AGM Earnings Prediction
The chart below shows how AGM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AGM sees a -0.56% change in stock price 10 days leading up to the earnings, and a +2.41% change 10 days following the report. On the earnings day itself, the stock moves by -1.19%. This data can give you a slight idea of what to expect for the next quarter's release.
AGM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
353.27M
29.73%
-9.42%
Gross Margin
--
--
--
Operating Margin
17.10%
-15.68%
-8.95%
Net Margin
13.48%
-15.43%
-9.59%
EPS
3.72
10.71%
-20.68%
No Data Available
AGM Earnings Analysis
Federal Agricultural Mortgage Corporation Corporation (AGM.N) Earnings Conference Call
Positive
- Point**: Farmer Mac had a remarkable year in 2023 with double-digit earnings growth, record net effective spread of $327 million, and a 10% growth in outstanding business volume to $28.5 billion. (Bradford T. Nordholm)
- 28% growth in net effective spread to $327 million
- 38% growth in core earnings to $171 million
- 10% growth in outstanding business volume to $28.5 billion
- Point**: Farmer Mac increased its quarterly common stock dividend by 27% to $1.40 per share, marking the 13th consecutive year of dividend increases. (Bradford T. Nordholm)
- $0.30 per share increase in quarterly common stock dividend to $1.40 per share
- Point**: Farmer Mac provided $8.3 billion in liquidity and lending capacity to lenders serving rural America, reflecting a net year-over-year outstanding business volume growth of over $2.5 billion. (Bradford T. Nordholm)
- Provided gross liquidity and lending capacity of $8.3 billion
- Net year-over-year outstanding business volume growth of over $2.5 billion
- Point**: Farmer Mac's renewable energy and telecommunications portfolios drove exceptional growth in the rural infrastructure line of business, with the total renewable energy segment doubling in size and the telecommunications portfolio growing nearly 60% year-over-year. (Bradford T. Nordholm)
- Total renewable energy segment more than doubled in size during the year
- Telecommunications portfolio grew nearly 60% year-over-year
- Point**: Farmer Mac's focus on Farm & Ranch loans resulted in the acquisition of $600 million of mortgage servicing rights from a third party, further enhancing their servicing portfolio. (Bradford T. Nordholm)
- Acquired $600 million of mortgage servicing rights for Farm & Ranch loans
- Purchased servicing rights for approximately $700 million of mortgage servicing rights for Farm & Ranch loans owned by Farmer Mac
- Point**: Farmer Mac's core capital of $1.5 billion as of December 31, 2023, exceeded the statutory requirement by $589 million, representing an improvement in both quantity and quality of the capital base. (Aparna Ramesh)
- Core capital exceeded statutory requirement by $589 million
- Core capital increased from year-end 2022
- Point**: Farmer Mac delivered record core earnings of $171.2 million in 2023, with a 19% return on equity and an efficiency ratio below the 30% target, highlighting strong financial performance. (Aparna Ramesh)
- Record core earnings of $171.2 million in 2023
- 19% return on equity
- Efficiency ratio below the 30% target
Negative
- Operating expenses increased by 19% year-over-year, primarily due to increased headcount, stock compensation, and spending on software licenses and IT initiatives.
- Despite the rise in short-term rates benefiting earnings, there may be limited downside if rates decline in the future, impacting profitability.
- A single telecommunications loan was downgraded to substandard, resulting in a provision of $1.1 million, affecting the credit profile.
- The efficiency ratio held at 27% at year-end, below the target of 30%, but temporary increases may occur due to investments in infrastructure and loan processes.
