AGNC Investment Q1 Earnings Top Estimates, Asset Yield Improves Y/Y

Core Viewpoint - AGNC Investment Corp. reported a decline in net spread and dollar roll income per common share for Q1 2025, although it exceeded consensus estimates. The company faces challenges with lower tangible book value and net interest spread despite benefiting from increased asset yields [1][9]. Financial Performance - The net spread and dollar roll income per common share was 44 cents, surpassing the Zacks Consensus Estimate of 41 cents, but down from 58 cents in the same quarter last year [1]. - Comprehensive income per common share was 12 cents, a significant decrease from 48 cents in the prior year [2]. - Adjusted net interest and dollar roll income totaled $477 million, a 3.8$159 million, missing the Zacks Consensus Estimate by 27.4%, with net interest expenses of $30 million [3]. - The average asset yield on the portfolio increased to 4.78$78.9 billion, including $70.5 billion in Agency mortgage-backed securities [6]. - The portfolio experienced an average actual constant prepayment rate of 7$8.25, reflecting a 6.7% decline year-over-year [5]. - The economic return on tangible common equity was 2.4%, down from 5.7% in the prior year, including a dividend per share of 36 cents [5]. - The company declared a total dividend of 36 cents per share for the first quarter, with cumulative dividends of $14.3 billion since its IPO [8]. Market Position - AGNC Investment's first-quarter results were positively impacted by increased asset yields and portfolio repositioning, which help mitigate risks from higher interest rates and prepayments [9]. - The company currently holds a Zacks Rank 2 (Buy) [10].