Fannie Mae 3Q Profit Rises to $4.18B as Revenue Tops Estimates
FNMA sits 41% above its 52-week low of $2.96.
Summary
Fannie Mae earned $4.18 billion, or 18 cents a share, up from $3.86 billion a year earlier, with revenue up 4.7% to $7.65 billion — ahead of the $7.32 billion FactSet consensus. Both businesses grew: single-family revenue rose 3.9% to $6.34 billion and multifamily jumped 8.6% to $1.32 billion. The offset is credit quality: single-family delinquency ticked up to 0.62% from 0.58% and multifamily to 0.62% from 0.6%, consistent with the tripled $1.1 billion credit loss provision disclosed in this morning's 10-Q and 8-K. For a thinly traded OTC name whose story is dominated by the government's ownership stake, the beat is a modest positive but the rising delinquencies and the $205 billion capital shortfall remain the bigger swing factors.
At the time of this announcement, FNMA was trading at $4.17 on OTC in the Finance sector, with a market capitalization of approximately $5B. The 52-week trading range was $2.96 to $12.39. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.