Dynex Capital (DX) Reports Earnings Tomorrow: What To Expect

Mortgage REIT Dynex Capital (NYSE:DX) will be announcing earnings results this Monday before the bell. Here’s what to expect.

Dynex Capital missed analysts’ revenue expectations by 22.4% last quarter, reporting revenues of $17.13 million. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.

Is Dynex Capital a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dynex Capital’s revenue to grow 2,146% year on year to $28.91 million, improving from the 144% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dynex Capital has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Dynex Capital’s peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Citigroup delivered year-on-year revenue growth of 8%, beating analysts’ expectations by 3.5%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Citigroup traded up 2.9% following the results while Texas Capital Bank was also up 4.8%.

Read our full analysis of Citigroup’s results here and Texas Capital Bank’s results here.

There has been positive sentiment among investors in the banks segment, with share prices up 10.3% on average over the last month. Dynex Capital is up 3.2% during the same time and is heading into earnings with an average analyst price target of $13.75 (compared to the current share price of $12.57).

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