Upcoming AWS Coverage on Annaly Capital Management Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 21, 2017 / Active Wall St. announces its post-earnings coverage on Chimera Investment Corp. (NYSE: CIM). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on February 14, 2017. The New York-based Company's core earnings per share outperformed market consensus estimates. Register with us now for your free membership at:

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One of Chimera Investment's competitors within the REIT - Diversified space, Annaly Capital Management, Inc. (NYSE: NLY), released its financial results for the quarter and year ended December 31, 2016 aftermarket on Wednesday, February 15, 2017. AWS will be initiating a research report on Annaly Capital Management in the coming days.

Today, AWS is promoting its earnings coverage on CIM; touching on NLY. Get our free coverage by signing up to:

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Earnings Reviewed

During Q4 FY16, Chimera's interest income grew to $260.82 million from $201.91 million in Q4 FY15. The Company's total interest expense also increased to $106.74 million in Q4 FY16 from $64.96 million in Q4 FY15. The Company reported net interest income of $154.09 million in Q4 FY16 compared to $136.96 million in Q4 FY15.

The mortgage investor reported GAAP net income available to common shareholders of $219.45 million, or $1.17 per basic common share, in Q4 FY16 compared to $115.38 million, or $0.61 per basic common share, in Q4 FY15. The Company's Q4 FY16 core earnings per share stood at $121.34 million, or $0.65 per basic common share, compared to $100.32 million, or $0.53 per basic common share, in Q4 FY15. Wall Street had expected the Company to report core earnings $0.62 per basic common share.

For full year FY16, Chimera's net interest income fell to $586.21 million from $613.37 million in FY15. The Company's net income available to common shareholders for FY16 was $549.49 million, or $2.92 per diluted share, up from $250.35 million, or $1.25 per diluted share, in FY15. Furthermore, core earnings for FY16 came in at $454.94 million, or $2.42 per diluted share, versus $472.43 million, or $2.37 per diluted share, in FY15.

Earnings Metrics

During the reported quarter, the Company's annualized return on average equity was 28.82% compared to 33.02% reported in the year ago same period. Moreover, economic net interest income to average equity ratio stood at 19.48% for Q4 FY16 versus 14.98% reported in the last year's same quarter. The Company's GAAP book value improved to $15.87 per share as on December 31, 2016, from $15.70 on December 31, 2015.

As on December 31, 2016, Chimera's net interest margin was 4.0% compared to 3.6% as on December 31, 2015. Furthermore, ratio of interest-earning assets to interest bearing liabilities stood at 1.15% on December 31, 2016, compared to 1.17% December 31, 2015. The Company's economic net interest income over net interest rate spread ratio stood at 3.5% as on December 31, 2016, compared to 3.2% as at end of last year's fourth quarter.

Balance Sheet Analyzed

Chimera's average total interest earnings assets balance during quarter ended December 31, 2016, was $15.02 billion compared to $13.88 billion in Q4 FY15. Furthermore, average total yield on these interest earnings assets were 6.9% for the quarter ended December 31, 2016, compared to 5.8% in the quarter ended December 31, 2015. The Company's average total interest bearing liabilities increased to $13.04 billion in Q4 FY16 from $11.91 billion in Q4 FY15.

Dividend and Share Repurchase

In a separate press release on February 14, 2017, Chimera's Board of Directors announced Q1 cash dividend of $0.50 per common share. The dividend is payable April 28, 2017, to common stockholders of record on March 31, 2017. Furthermore, the Board of Directors expects to maintain a $0.50 dividend for the remaining three quarters of FY17.

During full year FY16, the Company bought $250 million of Chimera's shares at a discount to its book value at an average price of $13.94.

Stock Performance

On Friday, February 17, 2017, the stock closed the trading session at $18.70, marginally falling 0.05% from its previous closing price of $18.71. A total volume of 1.39 million shares have exchanged hands. Chimera Investment's stock price advanced 16.65% in the last three months, 21.89% in the past six months, and 72.59% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 9.87%. The stock is trading at a PE ratio of 6.39 and has a dividend yield of 10.70%.

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SOURCE: Active Wall Street