Invesco Reports Strong 2Q Results

Invesco Mortgage Capital IVR posted solid 2Q results, with EPS at $0.91, $0.16 ahead of estimates made by Jefferies, and $0.11 ahead of consensus. Earnings were above market expectations, asset values are resilient, and asset yields are running at the high end of the industry. Jefferies anticipates the non-Agency portfolio to become increasingly important to results as the company enters an up-rate environment. Jefferies maintains its "buy" rating but the price target has been lowered from $26 to $25. Invesco Mortgage Capital closed yesterday at $20.59.