Why Is AGNC Investment (AGNC) Down 3.4% Since Last Earnings Report?

Core Viewpoint - AGNC Investment's recent earnings report indicates a decline in net spread and dollar roll income, missing estimates and reflecting a negative trend in performance leading up to the next earnings release [2][10]. Financial Performance - The third-quarter 2024 net spread and dollar roll income per common share was 43 cents, missing the Zacks Consensus Estimate of 47 cents and down from 65 cents in the previous quarter [2]. - Adjusted net interest and dollar roll income totaled $420 million, a decrease of 12.9% from the previous quarter [3]. - Comprehensive income per common share was 64 cents, compared to a comprehensive loss of 13 cents in the prior quarter [3]. Key Metrics - Net interest expenses rose to $64 million from $3 million in the prior quarter, significantly higher than the Zacks Consensus Estimate of $219.3 million [4]. - The average asset yield on the portfolio increased to 4.73% from 4.69% in the previous quarter [4]. - The average net interest spread decreased to 2.21% from 2.69% in the previous quarter [5]. Balance Sheet and Portfolio - As of September 30, 2024, AGNC's investment portfolio totaled $73.1 billion, including $68 billion in Agency mortgage-backed securities [7]. - Cash and cash equivalents were $507 million, down 4.3% from the prior quarter [8]. Dividend Information - In the third quarter, AGNC announced a dividend of 12 cents per share for July, August, and September, totaling $13.7 billion in common stock dividends since its IPO in May 2008 [9]. Market Outlook - Estimates for AGNC Investment have trended downward, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [12].