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Stock Analyst Update

Fannie Mae's Earnings Chug Past Estimates

Bigger mortgage portfolio, good risk management were key factors.


Political heat and higher interest rates didn't spoil first-quarter earnings for Fannie Mae (FNM). The company reported earnings per share of $1.02, or $1.06 billion, on Tuesday, beating Wall Street's consensus estimate by a penny.

Fannie, which buys mortgages from lenders and resells them to investors as securities, has continued to increase its profits at an impressive pace, despite mounting pressure in Washington from those who want to curb Fannie's powers and two interest-rate hikes from the Federal Reserve. Earnings per share increased 16% when comparing first-quarter results with the same period last year.

Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.