AGNC Investment Surpasses Q3 Earnings Estimates but Falls Short on Revenue Expectations

AGNC Investment Corp. (NASDAQ:AGNC) surpassed expectations in its third-quarter earnings while falling short on revenue amid a challenging interest rate environment. The company reported earnings of $0.63 per share for Q3, beating analysts' expectations of $0.51 by $0.12. However, revenue came in at $376 million, significantly below the expected $707.77 million.

AGNC achieved a 9.3% economic return on tangible equity for the quarter. This return included a $0.36 dividend per common share and a $0.42 increase in tangible net book value per share. The company's tangible net book value per share rose to $8.82 as of September 30, marking a 5% increase from $8.40 at the end of Q2.

AGNC's President and CEO, Peter Federico, stated, "AGNC delivered a very strong economic return of 9.3% during the third quarter, thanks to significant book value growth and our impressive monthly dividend of $0.12 per common share, which has remained stable for 55 months."

The company maintained a leverage ratio of 7.2 times its tangible net book value at the end of the quarter. AGNC's investment portfolio stood at $73.1 billion as of September 30, primarily comprised of Agency mortgage-backed securities.

Management noted that the outlook for Agency MBS has improved following the Federal Reserve's initial interest rate cut in September, with further rate cuts anticipated over the next 12-24 months.