Financial Performance - Annaly generated a ~12% economic return for the year with earnings available for distribution in excess of the dividend[8] - Earnings available for distribution was $0.72 per average common share for the quarter[9] - Book value per common share was $19.15[9] - Declared quarterly common stock cash dividend of $0.65 per share[9] - Economic return was 1.3% for the fourth quarter and 11.9% for the full year 2024[9] Portfolio Composition and Performance - Total portfolio was $80.9 billion, including $70.6 billion in highly liquid Agency MBS strategy, which represents 87% of total assets and 59% of dedicated capital[9] - Annaly's Residential Credit portfolio increased to $7.0 billion, representing a 17% increase year-over-year[9] - Annaly's MSR portfolio increased 24% year-over-year to $3.3 billion in market value, now representing 19% of dedicated capital[9] Financing and Liquidity - Economic leverage was 5.5x, down from 5.7x in the third quarter[9] - $6.9 billion of total assets were available for financing, including cash and unencumbered Agency MBS of $3.9 billion[9] - Financing costs decreased quarter-over-quarter with average GAAP cost of interest-bearing liabilities of 4.96%, down 46 basis points quarter-over-quarter, and average economic cost of interest-bearing liabilities of 3.79%, down 14 basis points quarter-over-quarter[9]

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Annaly Capital Management (NLY) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.46%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.67 per share when it actually produced earnings of $0.66, delivering a surprise of -1.49%.Over the las ...

Financial Performance - GAAP net income for Q4 2024 was $0.78 per average common share, with an economic return of 1.3% for the quarter and 11.9% for the full year 2024[6]. - For the year ended December 31, 2024, net interest income increased to $247,796,000 compared to a loss of $111,384,000 in 2023[21]. - Net income attributable to Annaly for the year ended December 31, 2024, was $1,001,906,000, a significant recovery from a loss of $1,643,171,000 in 2023[21]. - Basic net income per share available to common stockholders for 2024 was $1.62, compared to a loss of $3.61 per share in 2023[21]. - Comprehensive income attributable to common stockholders for 2024 was $1,165,073,000, compared to $588,649,000 in 2023[21]. - GAAP net income for the year ended December 31, 2024, was $1,011,768, compared to a loss of $1,638,457 for the year ended December 31, 2023[33]. - Annualized GAAP return on average equity for the year ended December 31, 2024, was 8.53%, improving from a loss of 14.33% in 2023[33]. Portfolio and Asset Management - Annaly's total portfolio reached $80.9 billion, with a 3% decrease in the Agency portfolio, which now represents 59% of dedicated equity capital[6]. - The Residential Credit portfolio increased by 8% quarter-over-quarter to $7.0 billion, accounting for 22% of dedicated equity capital[6]. - The Mortgage Servicing Rights (MSR) portfolio grew by 17% quarter-over-quarter to $3.3 billion, representing 19% of dedicated equity capital[6]. - Annaly's MSR portfolio grew by 24% year-over-year, positioning the company as the third largest purchaser of MSR in 2024[7]. - As of December 31, 2024, the total investment portfolio amounted to $98.19 billion, an increase from $97.74 billion in the previous quarter and $87.40 billion year-over-year[25]. Income and Expenses - Interest income for the year ended December 31, 2024, was $4,840,034,000, up from $3,731,581,000 in 2023, representing a growth of approximately 29.8%[21]. - Interest expense for the year ended December 31, 2024, was $4,592,238,000, compared to $3,842,965,000 in 2023, reflecting an increase of about 19.5%[21]. - Total general and administrative expenses for 2024 were $171,356,000, compared to $162,553,000 in 2023, showing a slight increase[21]. - Economic interest expense for Q4 2024 was $879,287 thousand, up from $664,525 thousand in Q4 2023, marking a 32.3% increase[51]. Balance Sheet and Equity - Total assets increased to $103,556,384 thousand as of December 31, 2024, up from $101,515,995 thousand at September 30, 2024, representing a growth of 2.01%[17]. - Total liabilities rose to $90,859,432 thousand, up from $88,976,046 thousand, an increase of 2.10%[17]. - Stockholders' equity increased to $12,696,952 thousand from $12,539,949 thousand, reflecting a growth of 1.25%[17]. - Total equity increased to $12,696,952 thousand as of December 31, 2024, up from $11,345,091 thousand a year earlier, representing a 11.9% increase[43]. Market Outlook and Future Projections - The outlook for 2025 is optimistic, supported by favorable dynamics in Agency MBS, decreasing financing costs, and a steeper yield curve[8]. - The company will hold its fourth quarter 2024 earnings conference call on January 30, 2025, at 9:00 a.m. Eastern Time[14]. Dividends and Returns - The company declared a dividend of $0.65 per common share for the quarter, maintaining the same level as the previous quarter and year[23]. - The annualized dividend yield increased to 14.21% for the quarter ended December 31, 2024, compared to 12.95% in the previous quarter and 13.42% a year earlier[23]. Economic Ratios and Leverage - The economic leverage at period-end was 5.5:1 as of December 31, 2024, a slight decrease from 5.7:1 in the previous quarter and unchanged from a year ago[23]. - Economic leverage ratio decreased to 5.5:1 as of December 31, 2024, down from 5.7:1 in the previous periods[43]. - The economic capital ratio remained stable at 14.6% for both December 31, 2024, and September 30, 2024, compared to 14.0% a year ago[44].

Core Viewpoint - Annaly Capital Management (NLY) is showing potential as a strong investment option due to its recent technical indicators and positive earnings estimate revisions [1][2][3] Technical Analysis - NLY has recently crossed above the 200-day moving average, indicating a long-term bullish trend [1] - The stock has increased by 6% over the past four weeks, suggesting upward momentum [2] Earnings Estimates - There have been two upward revisions in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3] - The consensus estimate for NLY has also moved up, reinforcing the bullish outlook [3] Market Position - NLY is currently rated as a Zacks Rank 2 (Buy), suggesting that it may continue to experience price increases [2]

Core Viewpoint - Annaly Capital Management Inc. (NLY) is expected to report fourth-quarter 2024 results on January 29, with anticipated year-over-year growth in net interest income (NII) but a likely decline in earnings [1]. Financial Performance - In the last reported quarter, NLY posted adjusted earnings available for distribution (EAD) per average share of 66 cents, missing the Zacks Consensus Estimate of 67 cents, despite improvements in the average yield on interest-earning assets [2]. - The consensus estimate for fourth-quarter earnings is 67 cents per share, indicating a 1.47% decrease from the year-ago reported number [3]. - The consensus estimate for revenues is pegged at $242 million, showing a significant year-over-year rise from negative $53.5 million [4]. Market Conditions - The mREIT sector is likely to have benefited from favorable conditions in the fourth quarter, driven by reduced volatility in fixed-income markets, which is expected to have tightened mortgage spreads and boosted NLY's book value per share (BVPS) [5]. - Mortgage rates were close to 6.8% in the fourth quarter, slightly higher than the 6.2% observed at the end of the third quarter, impacting housing affordability and overall mortgage demand [6]. Operational Insights - A significant portion of NLY's mortgage-backed securities (MBS) holdings is expected to have experienced elevated levels of constant prepayment rates, positively impacting net premium amortization and supporting growth in interest income and average asset yield [7]. - The consensus estimate for fourth-quarter NII is pegged at $241.9 million, compared to an NII of $13.4 million in the previously reported quarter [7]. - The Federal Reserve's 50 basis point interest rate reduction in the fourth quarter is expected to have positively impacted NLY by decreasing funding costs [8]. Servicing Income - Prepayment speeds increased in October but have since slowed due to rising mortgage rates, likely negatively impacting NLY's mortgage servicing rights (MSR) portfolio and reducing servicing fees [9]. - The Zacks Consensus Estimate for net servicing income in the fourth quarter of 2024 is $104 million, indicating a sequential decline of 5.1% [9]. Earnings Prediction - The model indicates that it cannot be conclusively predicted that NLY will beat the Zacks Consensus Estimate this time, as the company lacks a positive Earnings ESP and a favorable Zacks Rank [10]. - Annaly has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 4 (Sell) [11].

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Annaly Capital Management (NLY) closed the most recent trading day at $18.14, moving -2% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.54%. Meanwhile, the Dow experienced a drop of 1.63%, and the technology-dominated Nasdaq saw a decrease of 1.63%.Prior to today's trading, shares of the real estate investment trust had lost 6.33% over the past month. This has lagged the Finance sector's loss of 3.4% and the S&P 500's loss of 2.2% in that time.Investors w ...

Company Performance - Annaly Capital Management (NLY) closed at $18.77, reflecting a -0.37% change from the previous day, which is less than the S&P 500's daily loss of 0.09% [1] - Over the past month, shares of Annaly Capital Management have decreased by 3.24%, which is better than the Finance sector's loss of 4.24% and the S&P 500's loss of 0.29% [2] Earnings Expectations - The upcoming earnings disclosure is anticipated to show an EPS of $0.67, down 1.47% from the prior year quarter, with a projected revenue of $242 million, indicating a significant rise of 551.91% from the equivalent quarter last year [3] - For the full year, analysts expect earnings of $2.65 per share and revenue of $302.5 million, representing changes of -7.34% and +371.58%, respectively, from last year [4] Analyst Projections - Recent shifts in analyst projections for Annaly Capital Management are important for investors, as upward revisions indicate analysts' positive outlook on the company's business operations and profit generation capabilities [5] - The Zacks Rank system, which assesses estimate revisions, currently places Annaly Capital Management at a rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [7] Valuation Metrics - Annaly Capital Management is trading at a Forward P/E ratio of 7.12, which is a discount compared to the industry's average Forward P/E of 9.08 [8] - The REIT and Equity Trust industry, part of the Finance sector, has a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries [8]

Core Insights - The article emphasizes the attractiveness of ultra-high-yield dividend stocks, which currently average a yield of 8.53% [4] Group 1: Dividend Stocks Performance - Dividend stocks have historically outperformed non-dividend payers, with an average annual return of 9.17% compared to 4.27% over a 50-year period [3] - The consistent profitability and long-term growth potential of dividend-paying companies make them appealing for investors [2] Group 2: Pfizer (PFE) - Pfizer offers a yield of 6.72% and has shown resilience despite declining sales from COVID-19 therapies, with projected sales of $8.5 billion in 2024, down from over $56 billion in 2022 [4][5] - The company’s oncology and specialty care segments are performing well, indicating a strong product portfolio beyond COVID-19 therapies [6] - Pfizer's acquisition of Seagen in December 2023 enhances its oncology pipeline and is expected to yield cost savings [7] - The healthcare sector's defensive nature provides cash-flow predictability, making Pfizer a reliable investment [8] Group 3: Annaly Capital Management (NLY) - Annaly Capital Management boasts a yield of 13.14%, with a historical average yield of around 10% over the past two decades [9] - The company is positioned to benefit from a declining interest rate environment, which can improve its net interest margin [11] - Annaly primarily focuses on agency assets, providing an added layer of protection and allowing for sustained high yields [13] - The stock is trading close to its book value, making it an attractive option for income-seeking investors [14] Group 4: Realty Income (O) - Realty Income offers a yield of 5.72% and has consistently increased its dividend for over 27 years [15] - The company maintains a high occupancy rate of 98.7%, indicating strong demand for its commercial real estate properties [18] - Realty Income's diversified portfolio, including recent acquisitions, enhances the predictability and security of its funds from operations [19] - The stock is currently valued at a 25% discount to its average cash flow multiple over the past five years, indicating it is historically cheap [20]