Dynex Capital (DX) to Announce Q4 Earnings on January 26, EPS Expected to Drop 55%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: seekingalpha
- Earnings Announcement: Dynex Capital is set to announce its Q4 earnings on January 26 before market open, with a consensus EPS estimate of $0.27, reflecting a significant 55% year-over-year decline, indicating pressure on profitability.
- Revenue Expectations: The revenue estimate for Q4 stands at $59.41 million, representing a substantial 763.5% year-over-year increase, showcasing the company's strong revenue growth despite challenges in earnings.
- Historical Performance Review: Over the past two years, Dynex Capital has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, indicating a degree of stability in its financial performance.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and two downward revisions, while revenue estimates saw one upward and one downward revision, reflecting a cautious market outlook on the company's future performance.
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Analyst Views on DX
Wall Street analysts forecast DX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DX is 15.25 USD with a low forecast of 14.50 USD and a high forecast of 16.00 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.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 14.570
Low
14.50
Averages
15.25
High
16.00
Current: 14.570
Low
14.50
Averages
15.25
High
16.00
About DX
Dynex Capital, Inc. is a financial services company. The Company is an internally managed mortgage real estate investment trust (REIT), which invests in mortgage-backed securities (MBS). It finances its investments principally with repurchase agreements. Its objective is to provide attractive risk-adjusted returns to its shareholders over the long term that are reflective of a leveraged, high-quality fixed income portfolio with a focus on capital preservation. It seeks to provide returns to its shareholders primarily through the payment of regular dividends and through capital appreciation of its investments. It primarily invests in Agency MBS, of which over 97% are residential MBS (Agency RMBS), including to-be-announced (TBA) securities. The remainder of its investment portfolio consists of Agency commercial MBS (Agency CMBS) and Agency and non-Agency CMBS interest-only (CMBS IO) securities.
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.
Dynex Capital Increases Share Availability by 60M
- Increased Share Availability: Dynex Capital announced an amendment to its distribution agreement, increasing the number of shares available for sale by 60 million to a total of 221.29 million shares, enhancing market liquidity and providing more options for future financing.
- Remaining Issuable Shares: The company has 67.35 million shares still available for issuance, which supports its flexible operations in the capital markets and helps address future funding needs.
- Enhanced Shareholder Returns: While raising $1.5 billion in capital, Dynex signals a shift to a tighter spread regime, expected to yield a 29.4% return for shareholders, thereby boosting investor confidence.
- Financial Performance Fluctuations: Despite a decline in Q4 earnings due to rising expenses, the company reported increases in book value and net interest income, indicating a degree of financial health amidst challenges.
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Wall Street Analysts Adjust Ratings
- Acumen Price Target Raised: BTIG raised Acumen Pharmaceuticals' price target from $4 to $7, with analyst Thomas Shrader maintaining a Buy rating, indicating confidence in the company's growth potential despite a closing price of $2.08 on Monday.
- Exelixis Target Price Increase: HC Wainwright & Co. raised the price target for Exelixis from $49 to $52, with analyst Robert Burns maintaining a Buy rating, reflecting optimism about its market performance, closing at $43.61 on Monday.
- Baker Hughes Price Target Upgraded: BMO Capital increased Baker Hughes' price target from $55 to $65, with analyst Phillip Jungwirth maintaining an Outperform rating, suggesting a positive outlook on its future performance, closing at $56.29 on Monday.
- Brown & Brown Price Target Cut: B of A Securities lowered the price target for Brown & Brown from $94 to $90, with analyst Joshua Shanker maintaining a Neutral rating, indicating a cautious stance on the company's short-term performance, closing at $79.62 on Monday.
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