American Capital Mortgage Investment (MTGE) Reports Q3 Loss of $0.49

American Capital Mortgage Investment (NASDAQ: MTGE) reported Q3 EPS of ($0.49), versus $0.14 reported last year.

"Global fixed income and equity markets were volatile in the third quarter as investors struggled to weigh the impact of significant strains in emerging market economies and commodity price declines on U.S. economic growth and the Federal Reserve's stance on monetary policy," commented Gary Kain, President and Chief Investment Officer. "Against this backdrop, spreads on agency and non-agency MBS, investment grade corporate debt, CMBS, high-yield bonds and emerging market debt widened during the quarter. This spread widening was the primary driver of the decline in MTGE's book value during the quarter."

"Importantly, while spread widening negatively impacts near term book value, it also improves our earnings outlook as investment returns on both agency and non-agency assets increase," continued Mr. Kain. "In addition, the performance and return on our credit sensitive assets will be further supported by the continued strength in housing fundamentals, with house prices, delinquency rates and household formation all showing improvement."

"During the third quarter, we bought back 1.2 million shares of our common stock, or approximately 2.3% of shares outstanding as of June 30, 2015, for $18.1 million," commented Malon Wilkus, Chair and Chief Executive Officer. "We believe the accretion from share repurchases is an important element in maximizing long term shareholder value. Looking ahead, we will continue to evaluate common stock repurchases against a number of variables, including our price-to-book ratio, current market conditions and other investment opportunities."

For earnings history and earnings-related data on American Capital Mortgage Investment (MTGE) click here.

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