Dynex Capital Inc. Down 5.61% To $14.14 After Earnings Miss

Dynex Capital Inc (DX) missed earnings estimates for Q4 2022 this morning.

Analyst expectations for Dynex Capital Inc. earnings per share (EPS) were at $0.20, with the company missing those estimates with a reported EPS of $0.03, leading to a negative surprise of $0.17 per share (-85%). Dynex Capital Inc.'s earnings were down 93% year-over-year as the firm reported an EPS of $0.45 in its year-ago quarter. The negative annual growth shows the Real Estate company isn't performing well amid current economic conditions.

Consensus analyst estimates were at $9.6 million. The Real Estate company missed on those expectations for its fourth quarter with revenue of $6.2 million, a negative revenue surprise of $3.4 million (35%). The firm managed negative 60% growth year-over-year due to Dynex Capital Inc. reporting quarterly revenue of $15.6 million in its year-ago quarter. Dynex Capital Inc. achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 5.61% to $14.14 after the report.

Dynex Capital Inc.'s profit margins took a hit as earnings fell at a faster pace than revenues.

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

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 43. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Dynex Capital Inc is a real estate investment trust. The company primarily invests in residential and commercial mortgage-backed securities. Its investments consist principally of Agency mortgage-backed securities including residential MBS and commercial MBS.