Capstead beats as margin widens, prepayments dive

|About: Capstead Mortgage Corpor... (CMO)|By:, SA News Editor

A nice beat by Capstead Mortgage (CMO) sets the stock and maybe the entire mREIT sector up for a good day tomorrow. EPS of $0.35 is $0.04 ahead of estimates and compares to $0.23 per share in Q3. The quarterly dividend is $0.31 per share.

Financing spreads rose a big 38 basis points from Q3 to 1.25%. Prepayments declined 33% to a CPR of 17.14.

Book value per share of $12.47 is $0.12 higher than Q3 and compares to the share price of $12.37.

Management: Prepayment rates declined to levels not seen since early 2012; "We anticipate reporting earnings in 2014 sufficient to pay dividends at or above our 2013 quarterly dividend level."

CC tomorrow at 9 ET