Annaly(NLY) ZACKS·2025-02-28 17:35Core Insights - Annaly Capital Management's fourth-quarter 2024 adjusted earnings per share (EAD) were 72 cents, surpassing the Zacks Consensus Estimate of 67 cents and increasing from 68 cents in the previous year [2] - The company's book value per share (BVPS) declined year-over-year to 19.44 [6] - Annaly's net interest income (NII) for the reported quarter was 242 million, but improved from a negative 2.7, beating the Zacks Consensus Estimate of 2.86 reported in the previous year [2] - The average yield on interest-earning assets increased to 5.26% from 4.64% year-over-year, while the average economic costs of interest-bearing liabilities rose to 3.79% from 3.42% [5] - The net interest spread (excluding premium amortization adjustment) improved to 1.47% from 1.22% in the prior-year quarter, and the net interest margin increased to 1.71% compared to 1.58% in the fourth quarter of 2023 [5] Asset and Capital Management - Annaly's total assets reached $103.6 billion, reflecting a 2% increase from the prior quarter [4] - The economic capital ratio improved to 14.6%, up from 14% in the previous year [6] - Economic leverage decreased to 5.5X as of December 31, 2024, down from 5.7X sequentially and year-over-year [6] Market Position and Outlook - Estimates for Annaly have been trending upward, leading to a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11] - The company 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 [7] - Annaly's VGM Score reflects a poor Growth Score of F, a Momentum Score of B, and an overall aggregate score of D [9][10]