Summary
- On 7/25/2018, AGNC reported results for the second quarter of 2018. AGNC reported comprehensive income of $148 million and a non-tangible BV as of 6/30/2018 of $19.68 per common share.
- In this article, I will discuss my previous account projections versus actual results. I will also provide a comparison between AGNC and eight other sector peers regarding recent BV fluctuations.
- I will also provide my thoughts about AGNC’s MBS and derivatives portfolios as of 6/30/2018 and discuss trends that have occurred during July 2018 impacting the sector.
- Finally, I will project AGNC’s dividend per share rate for August-October 2018.
- When compared to my account projections, AGNC’s Q1 2018 results were “as expected”. My current price target and recommendation are stated in the “Conclusions Drawn” section of the article.
Introduction/Recap:
On 7/25/2018, AGNC Investment Corp. (AGNC) reported results for the second quarter of 2018. AGNC reported net income of $293 million, and other comprehensive loss (“OCL”) of ($145) million, comprehensive (total) income of $148 million, and a non-tangible book value (“BV”) as of 6/30/2018 of $19.68 per common share. AGNC also reported a tangible BV as of 6/30/2018 of $18.41 per common share.
In my prior AGNC Q2 2018 income statement and EPS projection article, I projected the company would report the following amounts in relation to the second quarter of 2018: 1) net income of $310 million; 2) an OCL of ($170) million; and 3) comprehensive income of $140 million. In my prior AGNC Q2 2018 and 7/13/2018 BV projection article, I projected the company would report a non-tangible and tangible BV as of 6/30/2018 of $19.70 and $18.40 per common share, respectively. As such, I believe AGNC’s quarterly results were “as expected” when compared to my projections and well within my stated ranges.
