Western Asset Mortgage Capital (WMC) Reports Q2 Core EPS of $0.30

Western Asset Mortgage Capital (NYSE: WMC) reported Q2 core EPS of $0.30, versus $0.23 reported last year.

"I am pleased to report that we delivered improved performance in the second quarter, generating an economic return on book value of 3.9% and higher sequential core earnings plus drop income of $12.7 million, or $0.30 per share," said Jennifer Murphy, Chief Executive Officer of the Company. "Our second quarter dividend of $0.31 per share reflects our commitment to paying an attractive dividend based on the sustainable earnings power of the portfolio balanced with our focus on maintaining greater stability in our book value."

Anup Agarwal, Chief Investment Officer of the Company, commented, "Despite the Brexit induced late June rally in the U.S. Treasury market, both our Agency and Non-Agency holdings increased in value over the course of the quarter. As a result, our book value increased sequentially by 1% during the quarter. We deployed slightly lower leverage on average in the second quarter, yet our core earnings plus drop income increased sequentially by approximately $3.2 million, or $0.07 per share, driven by a slightly higher weighted average yield on our portfolio and lower hedging costs."

"Our current expectations are for ongoing, yet slow economic growth and a 'lower for longer' interest rate environment in the U.S. Given these conditions, we believe that a balanced portfolio consisting of both Agency RMBS and credit-sensitive investments continues to be appropriate. We continually monitor the relative value of opportunities across the broad mortgage universe, in an effort to achieve an optimal risk-adjusted total economic return for our shareholders," Mr. Agarwal concluded.

For earnings history and earnings-related data on Western Asset Mortgage Capital (WMC) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• SVB & T Corporation (SVBT) Tops Q2 EPS by 275c
• Vivos Therapeutics posts 35% revenue gain but widens net loss