Federal Agricultural Mortgage (NYSE:AGM) Releases Quarterly Earnings Results, Misses Expectations By $0.38 EPS

Federal Agricultural Mortgage (NYSE:AGM) released its quarterly earnings results on Thursday. The credit services provider reported $4.82 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.20 by ($0.38), FiscalAI reports. Federal Agricultural Mortgage had a return on equity of 18.90% and a net margin of 29.98%. The firm had revenue of $125.25 million for the quarter, compared to analyst estimates of $121.29 million.

Here are the key takeaways from Federal Agricultural Mortgage’s conference call:

• Farmer Mac reported record business volume of $38.5 billion and first-nine-month revenue of $357.9 million and core earnings of $163.1 million, up 18.3% and 14.1%, respectively, year over year. Management said it is on track to reach $40 billion in business volume in 2026, two years ahead of its Investor Day timeline.
• Growth was broad-based, led by infrastructure finance, where outstanding volume rose $920 million in the quarter; Renewable Energy recorded its largest-ever quarterly net growth, and Farm & Ranch loan approvals reached a third-quarter record. Management reiterated expected annual business volume growth of approximately 8%–11% through 2030, while noting strong pipelines in several segments.
• Credit indicators showed some deterioration: the provision for credit losses was $11.1 million, including a $4.4 million provision on a troubled telecommunications exposure that entered bankruptcy, and substandard assets rose to 2.1% of the portfolio from 1.7% in the prior quarter. Management attributed the substandard increase mainly to regional and commodity-specific Farm & Ranch stress, and said collateral values remained strong.
• Operating efficiency remained strong, with a 27.5% quarterly efficiency ratio, below the company’s 30% long-term target; management expects a 27%–29% ratio for full-year 2026. Core capital exceeded the statutory minimum by $735 million, although the Tier 1 Capital Ratio declined to 12.9% as risk-weighted assets grew.
• Farmer Mac is developing risk-transfer transactions, including a potential credit-linked note as early as this quarter, to manage credit risk and potentially create regulatory capital capacity. Management said it is discussing capital treatment with its regulator and expects to provide more detail in coming quarters; execution and benefits remain uncertain.

Federal Agricultural Mortgage Trading Down 9.0%

NYSE AGM opened at $180.18 on Friday. The stock has a market cap of $1.95 billion, a P/E ratio of 9.53, a PEG ratio of 0.77 and a beta of 1.02. The company’s fifty day simple moving average is $211.65 and its 200-day simple moving average is $189.59. Federal Agricultural Mortgage has a 52 week low of $136.57 and a 52 week high of $248.29. The company has a current ratio of 0.56, a quick ratio of 0.56 and a debt-to-equity ratio of 1.82.

Federal Agricultural Mortgage Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a $1.60 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $6.40 dividend on an annualized basis and a yield of 3.6%. Federal Agricultural Mortgage’s dividend payout ratio (DPR) is currently 34.95%.

More Federal Agricultural Mortgage News

Here are the key news stories impacting Federal Agricultural Mortgage this week:

• Positive Sentiment: Q3 revenue was $125.25 million, above the $121.29 million consensus estimate. Earnings also increased to $4.82 per share from $4.52 a year earlier, despite missing analysts’ forecast. MarketBeat earnings report
• Positive Sentiment: Sidoti raised its estimates for Q3 and Q4 2027 EPS to $5.80 and $5.85, respectively, and its Q3 2028 estimate to $6.33, suggesting some improvement in its longer-term earnings outlook.
• Negative Sentiment: AGM’s Q3 EPS of $4.82 fell short of the roughly $5.20 consensus estimate. The earnings shortfall may pressure shares despite the revenue beat. Zacks earnings report
• Negative Sentiment: Sidoti cut its FY2026 EPS estimate to $20.21 from $20.74, and lowered estimates for Q4 2026, Q1 and Q2 2027, and Q1 and Q2 2028. The FY2026 forecast is also below the $20.72 consensus cited in the reports, signaling a softer near-term earnings view.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on AGM shares. Keefe, Bruyette & Woods increased their price target on Federal Agricultural Mortgage from $228.00 to $255.00 and gave the stock an “outperform” rating in a research report on Monday, August 3rd. Zacks Research cut shares of Federal Agricultural Mortgage from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 29th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Federal Agricultural Mortgage in a report on Friday, September 25th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $255.00.

Federal Agricultural Mortgage Company Profile

Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a federally chartered corporation that provides a secondary market for agricultural and rural lending. Established by Congress in 1988, the company is intended to improve the availability of credit for American agriculture and rural communities.

Farmer Mac purchases, guarantees and finances agricultural real estate loans, rural housing loans and loans supporting rural utilities and infrastructure. Its products and services also include financing for agricultural production and equipment, as well as liquidity and credit support for lenders through loan purchases, guarantees and securitization programs.

The company serves agricultural lenders, rural utilities, cooperatives and other eligible financial institutions across the United States.