Dynex Capital Earnings: Profit Rises for Fourth Straight Quarter

Dynex Capital Inc. (NYSE:DX) reported its results for the third quarter. Dynex Capital is a real estate investment trust that invests in mortgage loans and securities on a leveraged basis.

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Dynex Capital Inc. Earnings Cheat Sheet

Results: Net income for Dynex Capital Inc. rose to $19.2 million (34 cents per share) vs. $1.5 million (4 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dynex Capital Inc. beat the mean analyst estimate of 33 cents per share.

Quoting Management: Commenting on the Company’s results for the quarter, Mr. Thomas Akin, Chairman and Chief Executive Officer, stated, “We are very pleased with the consistency of our results in this challenging investment environment. Book value increased by almost 7% during the third quarter as all fixed income assets appreciated on the back of QE3. And while QE3 has supported our existing portfolio book value, it has reduced the expected returns we are seeing in our investment opportunity set.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 38.6% and in the first quarter, the figure rose 60.3%.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 35 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 33 cents a share to 32 cents over the last thirty days. The average estimate for the fiscal year is now $1.32 per share, down from $1.33 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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