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MFA Financial Earnings: MFA Stock Ticks 2% Lower Despite $500 Million Capital Raise

MFA Financial (NYSE:MFA) earnings for the first quarter of fiscal year 2020 have MFA stock ticking higher on Tuesday. This comes after reported revenue of $61.7 million was below Wall Street’s estimate of $152.3 million. Also, the company’s adjusted loss per share of $2.02 was way off of analysts’ expectations for earnings per share (EPS) of 14 cents for the quarter.

MFA Financial Earnings: MFA Stock Ticks Lower Despite $500 Million Capital Raise

Source: Shutterstock

Additionally, the company’s reported GAAP losses per share were also $2.02 for the period.

Here is what else is worth mentioning from the most recent MFA Financial earnings report.

  • Per-share losses were a negative switch from EPS of 19 cents during Q1 2019.
  • Revenue for the quarter comes in less than 1% lower compared to $61.93 million during the same time last year.
  • The MFA Financial earnings report also includes a net loss of $914.21 million.
  • That’s much worse than net income of $85.11 million during the first quarter of 2019.
  • The company also announced a $500 million capital raise via “a private senior secured loan agreement” with Apollo Global Management, Inc. and Athene Holding Ltd.

Craig Knutson, president and CEO of MFA Financial, said this about the MFA stock earnings:

“We are thrilled to enter into this strategic relationship with Apollo and Athene, which we think is a testament to MFA’s franchise and our dedicated team.  In addition to bolstering our balance sheet and providing MFA with additional flexibility, we view the capital raise as very much a strategic alliance.  We believe that Apollo’s deep institutional relationships, together with Athene, will provide synergies that will assist us in our business.”

The company does not mention any sort of guidance for fiscal 2020. This is likely due to the effects of the novel coronavirus pandemic. That said, we know what Wall Street is expecting. Analysts’ estimates call for EPS of 62 cents on revenue of $593 million.

MFA stock was down 5% on Tuesday.

Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.

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