Annaly Q4 Earnings Surpass Estimates, Book Value Declines Y/Y

Core Viewpoint - Annaly Capital Management, Inc. (NLY) reported strong fourth-quarter 2024 adjusted earnings, surpassing estimates, but faced a decline in annual earnings compared to the previous year. Financial Performance - Fourth-quarter adjusted earnings available for distribution (EAD) per share was 72 cents, exceeding the Zacks Consensus Estimate of 67 cents and up from 68 cents in the same quarter last year [1] - For the full year 2024, adjusted EAD per share was $2.7, beating the Zacks Consensus Estimate of$2.66, but down from $2.86 in the previous year [2] - Net interest income (NII) for the fourth quarter was$187.3 million, missing the Zacks Consensus Estimate of $242 million, and significantly improved from a negative$53.6 million in the prior-year quarter [3] - Total assets at the end of the fourth quarter were $103.6 billion, reflecting a 2$19.15 as of December 31, 2024, down 1.5% from $19.44 in the prior-year quarter [5] - The economic capital ratio improved to 14.6%, up from 14% in the previous year [5] - Economic leverage was 5.5X as of December 31, 2024, a decrease from 5.7X sequentially and year-over-year [5] Returns and Rankings - Annaly generated an annualized EAD return on average equity of 14.27% in the fourth quarter, an increase from 13.76% in the prior-year quarter [6] - The company currently holds a Zacks Rank 2 (Buy) [6]