Fannie Mae (OTCMKTS:FNMA) Posts Earnings Results, Misses Expectations 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 negative return on equity of 37.47% and a net margin of 2.61%.

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 1.8%

Shares of FNMA traded down $0.15 during mid-day trading on Wednesday, reaching $8.12. The company’s stock had a trading volume of 676,209 shares, compared to its average volume of 5,269,411. Fannie Mae has a 1-year low of $4.83 and a 1-year high of $15.99. The business has a 50-day simple moving average of $10.04 and a two-hundred day simple moving average of $10.78. The stock has a market cap of $9.40 billion, a P/E ratio of 4.48 and a beta of 1.73.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. B. Riley Financial upgraded Fannie Mae to a “hold” rating in a report on Wednesday, October 29th. Wedbush initiated coverage on Fannie Mae in a research report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 price target for the company. Finally, BTIG Research initiated coverage on Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $14.30.

About Fannie Mae

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.