Western Asset Mortgage Capital (WMC) Tops Q2 EPS by 19c

Western Asset Mortgage Capital (NYSE: WMC) reported Q2 EPS of $0.75, $0.19 better than the analyst estimate of $0.56.

• Recorded GAAP net income of $67.6 million, or $1.68 per basic and diluted share
  • Net income includes $114.1 million of net unrealized gains on MBS and other securities, $14.3 million of net realized loss on MBS and other securities, and $66.0 million of net loss on derivative instruments and linked transactions
• Generated core earnings plus drop income of $40.0 million, or $1.00 per basic and diluted share1,2
  • Core earnings of $0.75 per share
  • Drop income of $0.25 per share
• $15.31 per share net book value as of June 30, 20143
• Generated an economic return for the quarter of 12.6%4
• Total Stockholders' Equity of $638.9 million as of June 30, 2014
• 3.86% weighted average portfolio yield on Agency and Non-Agency MBS and other securities, including IO securities accounted for as derivatives and "linked transactions" under GAAP1
• 1.17% weighted average effective cost of financing on Agency and Non-Agency MBS and other securities, including swaps and linked transactions1
• 2.69% weighted average net interest spread on Agency and Non-Agency MBS and other securities, including IO securities accounted for as derivatives and swaps1
• $4.7 billion investment portfolio fair value as of June 30, 2014, including linked transactions
• Constant prepayment rate on its Agency RMBS portfolio of 4.9% for the quarter
• 6.5x leverage (including borrowings on linked transactions) as of June 30, 2014
  • 7.5x leverage when adjusted for net TBA position

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

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• Azitra, Inc. (AZTR) Tops Q2 EPS by 54c
• SuperCom (SPCB) Tops Q3 EPS by 43c