Annaly Capital Management Surpasses Q2 Earnings Estimates, Analysts See Upside Potential

Annaly Capital Management (NLY) reported Q2 earnings per share of $0.73, beating expectations by $0.02. However, book value fell short of forecasts. Wall Street analysts suggest a modest upside potential, with an average price target of $20.68 and a "Outperform" rating based on brokerage recommendations.

Title: Annaly Capital Management (NLY) Posts Q2 Adjusted EPS of $0.73 per Share, Beating Analysts' Expectations

Annaly Capital Management, Inc. (NLY) reported its second-quarter (Q2) earnings per share (EPS) of $0.73, surpassing analysts' expectations by $0.02. The company's adjusted EPS for the quarter ended June 30, 2025, was higher than the mean expectation of $0.71 per share [1]. Despite the positive earnings report, the company's book value fell short of forecasts.

Revenue for the quarter rose by 20.5% to $1.42 billion, exceeding the analysts' expectations of $1.30 billion [3]. The company's net income for the quarter was $19.84 million. The stock price has been on an upward trend, rising by 8.4% during the quarter and 11.5% year-to-date [3].

Wall Street analysts have been cautiously optimistic about Annaly's prospects. The average analyst rating on the shares is "buy," with 9 "strong buy" or "buy" recommendations, 5 "hold" recommendations, and no "sell" or "strong sell" recommendations [3]. The average consensus recommendation for the specialized REITs peer group is also "buy." The median 12-month price target for Annaly Capital Management Inc is $21.00, about 2.6% above its last closing price of $20.45 [3].

Annaly has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting an upward trend in earnings estimates. The Zacks Consensus Estimate for the company has increased by 1.2% over the past three months [2]. This upgrade positions Annaly in the top 5% of the Zacks-covered stocks in terms of estimate revisions, indicating potential for near-term stock price appreciation.

While the earnings report was positive, the book value shortfall may warrant further investigation. Investors should monitor Annaly's financial performance and earnings estimates closely as the company continues to navigate the real estate investment trust (REIT) market.

References
[1] https://www.marketscreener.com/news/earnings-flash-nly-annaly-capital-management-inc-posts-q2-adjusted-eps-0-73-per-share-vs-fact-ce7c5cd2d18cf422
[2] https://finance.yahoo.com/news/annaly-nly-upgraded-strong-buy-160004788.html
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TK2HS:0-annaly-capital-management-inc-reports-results-for-the-quarter-ended-june-30-earnings-summary/