Annaly Capital Management Q4 2025 Earnings Call Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Strong Economic Returns: Annaly Capital Management reported an economic return of 8.6% for Q4 2025, with over 20% for the full year, underscoring the resilience and competitive strength of its diversified housing finance strategies.
- Significant Capital Raising: The company raised $560 million in common equity in Q4 and $2.9 billion for 2025, enabling a 30% portfolio growth with double-digit increases across all investment strategies, enhancing its market position.
- Increase in Book Value: As of December 31, 2025, book value per share rose from $19.25 to $20.21, reflecting ongoing efforts to maintain strong liquidity and profitability, ensuring stable returns for shareholders.
- Forward-Looking Strategic Adjustments: Management anticipates continued growth in the non-Agency market and plans to allocate more capital towards non-Agency and MSR investments in response to market dynamics while maintaining flexibility.
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Analyst Views on NLY
Wall Street analysts forecast NLY stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NLY is 23.09 USD with a low forecast of 21.50 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 24.250
Low
21.50
Averages
23.09
High
25.00
Current: 24.250
Low
21.50
Averages
23.09
High
25.00
About NLY
Annaly Capital Management, Inc. is a diversified capital manager with investment strategies across mortgage finance. It owns a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations, credit risk transfer (CRT) securities, and other securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans and mortgage servicing rights. Its investment groups include Annaly Agency Group, Annaly Residential Credit Group, and Annaly Mortgage Servicing Rights Group. Annaly Agency Group invests in agency mortgage-backed securities collateralized by residential mortgages. Annaly Residential Credit Group invests in non-agency residential mortgage assets within residential and commercial markets. Annaly Mortgage Servicing Rights Group invests in MSR, which provides the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Annaly Capital Management Q4 2025 Earnings Call Highlights
- Strong Economic Returns: Annaly Capital Management reported an economic return of 8.6% for Q4 2025, with over 20% for the full year, underscoring the resilience and competitive strength of its diversified housing finance strategies.
- Significant Capital Raising: The company raised $560 million in common equity in Q4 and $2.9 billion for 2025, enabling a 30% portfolio growth with double-digit increases across all investment strategies, enhancing its market position.
- Increase in Book Value: As of December 31, 2025, book value per share rose from $19.25 to $20.21, reflecting ongoing efforts to maintain strong liquidity and profitability, ensuring stable returns for shareholders.
- Forward-Looking Strategic Adjustments: Management anticipates continued growth in the non-Agency market and plans to allocate more capital towards non-Agency and MSR investments in response to market dynamics while maintaining flexibility.
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Annaly Capital Management Set to Release Q4 Earnings on January 28
- Earnings Announcement: Annaly Capital Management is set to announce its Q4 earnings on January 28, with consensus EPS estimated at $0.73 (up 1.34% YoY) and revenue at $567.67 million (up 203.10% YoY), indicating strong growth potential in a favorable market environment.
- Performance Expectations: Over the past two years, NLY has beaten EPS estimates 75% of the time, yet has not surpassed revenue estimates, reflecting challenges in revenue growth, although recent EPS estimates have seen four upward revisions and three downward revisions.
- Market Reaction and Analyst Ratings: Despite peer AGNC Investment's Q4 results falling short of expectations, NLY's stock rose in after-hours trading, with BTIG upgrading its rating from Neutral to Buy, indicating optimism about NLY's future performance, especially as spreads tighten.
- Management Outlook: UBS analysts noted that NLY's earnings report should reflect positive book value gains, with management's outlook on spreads and leverage/returns being key focal points, anticipating stable book value accretion in the coming quarters.
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