Arlington Asset Investment (AI) Misses Q4 EPS by 1c

Arlington Asset Investment (NYSE: AI) reported Q4 EPS of $0.18, $0.01 worse than the analyst estimate of $0.19.

Fourth Quarter 2019 Financial Highlights

• $0.72 per diluted common share of GAAP net income
• $0.18 per diluted common share of non-GAAP core operating income
• $7.86 per common share of book value
• $0.225 per common share dividend
• 10.0% total economic return

"During the fourth quarter, a strong outperformance of agency mortgage-backed securities ("MBS") relative to interest rate hedges helped the Company deliver a 10% total economic return for the quarter and a positive return for the year. The Company's net spread earnings during the fourth quarter were relatively unchanged from the prior quarter as the improved funding backdrop from Federal Reserve rate cuts were generally offset by lower asset yields," said J. Rock Tonkel, Jr., the Company's President and Chief Executive Officer. "Although the Company believes that current investment opportunities in agency MBS are attractive, the Company actively began to expand its investment strategy during the fourth quarter to incorporate tailored mortgage credit investments, including through co-investing with select sourcing partners, with the objective of enhancing investment returns, diversifying risks, reducing overall leverage and, over time, improving the Company\'s cost of capital. As of year-end, the Company's capital allocation to specialty mortgage credit investments totaled 14% of investable capital, and the Company will continue to evaluate new mortgage credit investment opportunities that it believes will deliver higher risk-adjusted returns to its shareholders over time."

For earnings history and earnings-related data on Arlington Asset Investment (AI) click here.

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