Loading...
•
Jun 30, 2020
Dynex Capital Q2 2020 Earnings Report
Reported second quarter 2020 results with a comprehensive income of $1.15 per common share and a quarterly total economic return to common shareholders of 6.5%.
Key Takeaways
Dynex Capital, Inc. reported solid cash flows for shareholders in the second quarter of 2020, with a 6.5% total economic return. Core earnings declined due to a reduced leverage profile in early April, but the company was substantially re-invested by the end of the quarter and expects strong earnings expansion in the third quarter.
Comprehensive income of $1.15 per common share and net income of $8.31 per common share.
Quarterly total economic return to common shareholders of 6.5%.
Net interest spread and adjusted net interest spread of 1.96% for the second quarter of 2020.
Book value per common share of $16.69 at June 30, 2020.
Forward Guidance
The company expects strong earnings expansion in the third quarter due to reinvestment in Agency RMBS.
Positive Outlook
- Low financing rates
- Attractive risk-adjusted returns in liquid assets
- Expected strong earnings expansion in the third quarter
- Disciplined top-down approach
- Portfolio primarily consists of Agency RMBS
Challenges Ahead
- Volatility and disruption in national and international financial markets
- Potential adverse effects of the ongoing novel coronavirus (COVID-19) pandemic
- Changes in economic conditions
- Changes in interest rates and interest rate spreads
- Uncertainty concerning the long-term fiscal health and stability of the United States
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...