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ARR NYSE· ARMOUR Residential REIT Inc.
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ARR NYSE· ARMOUR Residential REIT Inc.
Earnings report Q3 2023

ARMOUR Residential REIT, Inc. Reports Mixed Revenue Performance in Latest Quarter

Segments of revenue

ARMOUR Residential REIT, Inc. reported revenue from two main segments in the latest quarter. The first segment is interest income, which amounted to $153.6 million for the three months ended September 30, 2023, compared to $74 million in the same period last year. The second segment is other income (loss), which includes realized losses on the sale of available-for-sale agency securities, credit loss expenses, and gains/losses on agency securities and U.S. Treasury securities. This segment recorded a loss of $171.7 million for the quarter, slightly higher than the loss of $164.4 million in the previous year's quarter.

Strengths

ARMOUR Residential REIT, Inc. demonstrated strength in its interest income segment, with a significant increase compared to the same period last year. This increase can be attributed to higher interest rates and a larger securities portfolio. The company's management highlighted the positive impact of their strategy to sell the remaining balance of available-for-sale securities during the first quarter of 2023, resulting in a realized loss of $7.5 million.

Challenges

The company faced challenges in its other income (loss) segment, which recorded a loss of $171.7 million for the quarter. This was primarily driven by losses on agency securities and a loss on U.S. Treasury securities. The management did not provide specific reasons for these losses in the report.

Noteworthy

It is worth noting that ARMOUR Residential REIT, Inc. experienced a mixed revenue performance in the latest quarter. While the interest income segment showed significant growth, the other income (loss) segment recorded a loss. The company's decision to sell available-for-sale securities during the first quarter of 2023 had a negative impact on their other income.

Summary

ARMOUR Residential REIT, Inc. reported a mixed revenue performance in the latest quarter. The company's interest income segment showed strong growth, likely due to higher interest rates and a larger securities portfolio. However, the other income (loss) segment recorded a loss, primarily driven by losses on agency securities and U.S. Treasury securities. The decision to sell available-for-sale securities during the first quarter of 2023 resulted in a realized loss. Overall, ARMOUR Residential REIT, Inc. faced challenges in its revenue performance but demonstrated strength in its interest income segment.

Source documents

Form 10-Q  filed on Oct 25, 2023
43 pages scanned

Reference data

Company financials Q3 revenue 111M
Analyst estimates Q3 EPS missed by -10.83%
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