RC Earnings Prediction
The chart below shows how RC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RC sees a +1.40% change in stock price 10 days leading up to the earnings, and a -1.45% change 10 days following the report. On the earnings day itself, the stock moves by -1.06%. This data can give you a slight idea of what to expect for the next quarter's release.
RC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
247.41M
-23.66%
46.49%
Gross Margin
--
--
--
Operating Margin
-19.29%
-189.06%
-37.49%
Net Margin
-3.02%
-120.74%
-83.77%
EPS
-0.08
-132.00%
-66.67%
No Data Available
RC Earnings Analysis
Ready Capital Corporation Corporation (RC.N) Earnings Conference Call
Positive
Small Business Lending Surge: 1. Record Small Business Lending Originations: Ready Capital achieved record quarterly originations of $440 million in its Small Business Lending segment, contributing significantly to overall revenue growth.
Cash Flow Improvement: 2. Strong Cash Flow from Loan Payoffs: The company reported increased transaction volume leading to payoffs of $490 million, which helped reduce leverage in existing CRE CLO structures.
Strong Cash Flow Generation: 3. Improved Portfolio Metrics: The CRE portfolio features a 9% contractual rate, with 78% of loans being cash-paying, indicating strong cash flow generation.
Portfolio Repositioning Success: 4. Successful Portfolio Repositioning: Ready Capital completed $331 million in loan and REO sales, generating $55 million in net proceeds and reducing negative carry by $0.08 per share.
Record Small Business Lending Income: 5. Growth in Small Business Lending Income: The Small Business Lending segment generated $21 million of pre-tax distributable income, marking the highest earnings contribution from this platform in the company's history.
Negative
Declining Book Value: 1. Declining Book Value: Book value per share decreased to $12.59 from $12.97 in the previous quarter, primarily due to declines related to CECL and net realized losses.
Distributable Earnings Decline: 2. Losses in Distributable Earnings: Distributable earnings showed a loss of $0.28 per common share, indicating significant financial strain despite a reported $0.25 per share when excluding realized losses.
Rising Delinquency Rates: 3. Increased Delinquencies: 60-day plus delinquencies increased by $53 million, reaching 6.2% of the total portfolio, reflecting ongoing credit challenges.
Acquisition-Related Operating Losses: 4. Operating Losses from Acquisitions: The acquisitions of Madison One and Funding Circle resulted in a quarterly distributable earnings loss of $1.8 million, highlighting integration challenges and timing issues.
Loan Sale Losses: 5. Significant Loan Sale Losses: The company reported a $110 million loss from loan sales, with the sales generating only $55 million in proceeds, indicating substantial write-downs on non-performing assets.
RC FAQs
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RC Earning Call Sentiment
Ready Capital Corporation (RC) Q3 2024 Earnings Call Transcript
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00:00
00:00
RC.N
-0.52%Positive
The earnings call reflects mixed sentiments. Basic financial performance shows improvement in GAAP losses and revenue growth, but CECL reserves indicate potential credit risks, leading to a neutral score. Product development is positive with SBA growth. Market strategy lacks clarity, while expenses rise slightly. No shareholder return plan impacts negatively. Q&A reveals management's cautious optimism, but concerns over credit losses and non-performing loans persist. Given the small-cap nature and mixed signals, a neutral stock price movement is expected.