ARMOUR Residential REIT (NYSE:ARR) Posts Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• EPS miss: ARMOUR reported Q earnings of $0.76 per share versus $0.80 expected (miss of $0.04) and revenue of $70.71M versus $155.79M consensus, with ROE 15.3% and net margin 40.31%.
• The company declared a monthly $0.24 dividend (payable May 28), implying a 16.4% yield105.49%, raising sustainability concerns.
• Shares traded at $17.56 (market cap ~$2.16B, PE 6.43) and the Street’s consensus rating is Hold with a $18.17 price target amid mixed analyst views.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) released its quarterly earnings results on Wednesday. The real estate investment trust reported $0.76 earnings per share for the quarter, missing analysts' consensus estimates of $0.80 by ($0.04), FiscalAI reports. ARMOUR Residential REIT had a return on equity of 15.30% and a net margin of 40.31%.The company had revenue of $70.71 million for the quarter, compared to analyst estimates of $155.79 million.

ARMOUR Residential REIT Trading Up 0.6%

NYSE ARR traded up $0.11 during trading on Wednesday, reaching $17.56. 2,097,162 shares of the company's stock were exchanged, compared to its average volume of 3,585,525. ARMOUR Residential REIT has a fifty-two week low of $13.98 and a fifty-two week high of $19.31. The firm has a market capitalization of $2.16 billion, a PE ratio of 6.43 and a beta of 1.42. The company's fifty day simple moving average is $17.33 and its 200-day simple moving average is $17.21.

ARMOUR Residential REIT Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Thursday, May 28th. Investors of record on Friday, May 15th will be paid a $0.24 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a c) dividend on an annualized basis and a yield of 16.4%. ARMOUR Residential REIT's dividend payout ratio (DPR) is currently 105.49%.

Institutional Investors Weigh In On ARMOUR Residential REIT

Several institutional investors have recently made changes to their positions in ARR. Corient Private Wealth LLC acquired a new stake in ARMOUR Residential REIT in the 4th quarter worth approximately $465,000. Mercer Global Advisors Inc. ADV acquired a new stake in ARMOUR Residential REIT in the 4th quarter worth approximately $209,000. Vident Advisory LLC lifted its holdings in ARMOUR Residential REIT by 15.9% in the 4th quarter. Vident Advisory LLC now owns 14,817 shares of the real estate investment trust's stock worth $262,000 after purchasing an additional 2,033 shares during the last quarter. State of Tennessee Department of Treasury lifted its holdings in ARMOUR Residential REIT by 19.9% in the 4th quarter. State of Tennessee Department of Treasury now owns 43,899 shares of the real estate investment trust's stock worth $764,000 after purchasing an additional 7,281 shares during the last quarter. Finally, XTX Topco Ltd acquired a new stake in ARMOUR Residential REIT in the 4th quarter worth approximately $228,000. 54.17% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

ARR has been the topic of several research analyst reports. Weiss Ratings cut ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, March 20th. Zacks Research upgraded ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a research note on Friday, March 20th. JonesTrading reduced their price objective on ARMOUR Residential REIT from $20.50 to $20.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. Finally, Wall Street Zen cut ARMOUR Residential REIT from a "hold" rating to a "sell" rating in a research note on Saturday, February 21st. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $18.17.

ARMOUR Residential REIT Company Profile

ARMOUR Residential REIT NYSE: ARR is a mortgage real estate investment trust that was formed in 2008 to acquire and manage a portfolio of residential mortgage-backed securities (RMBS). The company's investments are primarily agency-sponsored and agency-guaranteed RMBS issued by U.S. government-sponsored enterprises, along with credit risk transfer securities and select non-agency residential and multifamily RMBS. By focusing on high-quality mortgage assets, ARMOUR Residential REIT seeks to generate stable income and preserve capital through diversified exposure to the U.S.

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