Fannie Mae (OTCMKTS:FNMA) Posts Earnings Results, Misses Estimates By $0.08 EPS

Fannie Mae (OTCMKTS:FNMA) announced its quarterly earnings data on Wednesday. The financial services provider reported $0.60 EPS for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.08), Zacks reports. Fannie Mae had a net margin of 2.22% and a negative return on equity of 46.89%. The company had revenue of $7.33 billion for the quarter, compared to analyst estimates of $7.33 billion.

Here are the key takeaways from Fannie Mae’s conference call:

• Fannie Mae reported strong profitability and capital growth — Q4 net income $3.5 billion, full-year net income $14.4 billion, 14 consecutive years of profitability and year-end net worth of $109 billion.
• Multifamily momentum — guarantee book grew $35 billion to $535 billion, fourth-quarter net income $850 million and full-year multifamily net income $2.9 billion (the highest in four years), with full-year acquisitions at a five-year high.
• Credit concerns — single-family serious delinquencies rose 4 basis points (partly seasonal/forbearance) and the company increased the single-family allowance by $208 million; multifamily delinquencies and net charge-offs have increased and management expects multifamily delinquency levels could rise in 2026.
• Mixed expense and capital dynamics — quarterly administrative expenses rose due to severance, consulting and occupancy even as full-year non-interest expense fell $141 million after ~1,200 workforce reductions; risk-weighted assets increased 3% and Fannie continues to rely on CRT to manage CET1 requirements.

Fannie Mae Trading Down 0.7%

Shares of FNMA traded down $0.05 on Friday, reaching $7.62. 3,163,344 shares of the company’s stock were exchanged, compared to its average volume of 5,318,329. The business has a 50 day moving average price of $9.90 and a two-hundred day moving average price of $10.74. Fannie Mae has a 12 month low of $4.83 and a 12 month high of $15.99. The stock has a market capitalization of $8.82 billion, a P/E ratio of 3.41 and a beta of 1.73.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. B. Riley Financial restated a “neutral” rating on shares of Fannie Mae in a research note on Thursday. Wedbush started coverage on shares of Fannie Mae in a research note on Tuesday, November 25th. They issued an “outperform” rating and a $11.50 price objective for the company. Zacks Research lowered shares of Fannie Mae from a “hold” rating to a “strong sell” rating in a research report on Wednesday. Finally, BTIG Research began coverage on shares of Fannie Mae in a research note on Monday, January 26th. They set a “buy” rating and a $20.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $14.30.

Fannie Mae Company Profile

The Federal National Mortgage Association, commonly known as Fannie Mae (OTCMKTS:FNMA), is a government-sponsored enterprise established by Congress in 1938 as part of the New Deal to support the U.S. housing market. Headquartered in Washington, DC, Fannie Mae’s mission is to promote liquidity, stability and affordability in the mortgage market. The company operates by purchasing residential mortgage loans from financial institutions, pooling them into mortgage-backed securities (MBS), and providing guarantees to investors against borrower default.

In its core business, Fannie Mae works with mortgage lenders across the United States—including banks, credit unions and mortgage finance companies—to ensure a steady flow of capital for homebuyers and homeowners seeking refinancing.