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

Fannie Mae (OTCMKTS:FNMA) issued its quarterly earnings data on Wednesday. The financial services provider reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.08), Zacks reports. Fannie Mae had a net margin of 2.61% and a negative return on equity of 37.47%.

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 Stock Down 0.6%

Fannie Mae stock traded down $0.05 during trading on Wednesday, reaching $8.22. The stock had a trading volume of 1,033,394 shares, compared to its average volume of 5,282,638. Fannie Mae has a 52-week low of $4.83 and a 52-week high of $15.99. The stock has a market cap of $9.52 billion, a PE ratio of 4.48 and a beta of 1.73. The business has a 50 day moving average price of $10.04 and a 200 day moving average price of $10.78.

Analyst Upgrades and Downgrades

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