Arlington Asset Investment Corp Up 4.33% To $4.70 After Earnings Meet

Arlington Asset Investment Corp (AAIC) missed earnings estimates for Q3 2023 this afternoon.

Wall Street earnings per share (EPS) projections for Arlington Asset Investment Corp were at $0.07. The company missed those estimates with an EPS of $0.07. The earnings per share of $0.07 (which represents a -0% EPS surprise) led to the company's profits falling 36% compared to last year when the firm reported an EPS of $0.11. The decline in Arlington Asset Investment Corp's annual growth rate represents how the business isn't performing well amid current economic conditions.

Analyst projections for Arlington Asset Investment Corp revenue came in at a consensus of $5.7 million. Third-Quarter revenues missed estimates for $4.8 million by $914 thousand (16%). The company achieved negative 28% growth year-over-year compared to the firm's revenue of $6.6 million from the year-ago quarter. The lower earnings growth relative to revenue signals Arlington Asset Investment Corp has not been able to improve its profit margin.

The stock is up 4.33% to $4.70 after the report.

Arlington Asset Investment Corp's profit margins took a hit as earnings fell at a faster pace than revenues.

The average recommendation from Wall Street analysts was a Hold which may get revised based on this new data.

Trading in the five days leading up to the report earned Arlington Asset Investment Corp a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 53. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Arlington Asset Investment Corp is a U.S. based principal investment company. The company holds a leveraged MBS investment portfolio, including Agency MBS, private-label MBS, private-label interest-only MBS, and net long TBA positions, with Agency MBS accounting for the majority of total investment capital. Agency MBS consists of residential mortgage pass-through certificates, for which the U.S. government agency and government-sponsored enterprise guarantee the principal and interest payments. The company generates the majority of its total interest income from Agency MBS. The company focuses its business in the United States.