Annaly Capital Management (NLY) Stock Down, Q1 Results Due Out Wednesday

NEW YORK (TheStreet) -- Annaly Capital Management (NLY) - Get Report  shares are falling 0.91% to $10.32 on Tuesday afternoon even though analysts expect the company to post a year-over-year growth in its 2016 first quarter results. 

When the company releases its earnings on Wednesday after the market close, Wall Street is looking for earnings of 30 cents a share on revenue of $283.52 million for the recent quarter.

A year ago, the company earned 25 cents a share on revenue of $231.51 million. 

Overall, investors are cautious about high-yield mortgage Real Estate Investment Trusts (REIT) due to rate hike expectations, however, the company has been fighting against the bearish investor sentiment, Zacks analysts said.

In early April the company said it was buying another mortgage REIT, Hatteras Financial (HTS), in a deal valued at $1.5 billion, providing Annaly's shareholders with several advantages, analysts noted. 

New York-based Annaly Capital Management owns a portfolio of real estate related investments in the U.S.

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

You can view the full analysis from the report here: NLY