RITM Earnings Prediction
The chart below shows how RITM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RITM sees a -1.08% change in stock price 10 days leading up to the earnings, and a +1.25% change 10 days following the report. On the earnings day itself, the stock moves by +0.68%. This data can give you a slight idea of what to expect for the next quarter's release.
RITM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.54B
300.80%
145.89%
Gross Margin
--
--
--
Operating Margin
32.04%
128.51%
-155.84%
Net Margin
18.99%
208.45%
-3.95%
EPS
0.50
377.78%
150.00%
No Data Available
RITM Earnings Analysis
Rithm Capital Corp Corporation (RITM.N) Earnings Conference Call
Positive
Q4 EPS Exceeds Expectations: Rithm Capital Corp. reported a Q4 EPS of $0.60, exceeding expectations of $0.44, reflecting strong financial performance.
Earnings Growth Achievement: The company achieved a year-over-year earnings growth of 27%, with earnings available for distribution at $316 million or $0.60 per diluted share for Q4.
Asset Management Growth: Rithm Capital's total assets under management (AUM) reached approximately $80 billion, combining Rithm and Sculptor's assets, showcasing significant growth in asset management.
Pretax Income Increase: NewRez, the mortgage company, reported a 12% increase in pretax income quarter-over-quarter, totaling approximately $280 million, with a 20% return on equity for Q4.
Origination Business Performance: The origination business funded approximately $17 billion in Q4, marking a 9% increase quarter-over-quarter, with a 1200% year-over-year increase in origination PPI, demonstrating robust operational performance.
Negative
Stagnant Asset Valuation: Book value ended the year at $12.56, which is unchanged versus the prior year, indicating stagnation in asset valuation.
Net Income Discrepancy: GAAP net income for Q4 was $263 million or $0.50 per diluted share, which is lower than the earnings available for distribution of $316 million or $0.60 per diluted share, suggesting a discrepancy in reported earnings.
Earnings Growth vs. Equity Decline: Despite a reported 27% year-over-year growth in earnings, the overall return on equity decreased to 14% for the full year 2024, down from previous levels, indicating declining efficiency in generating profits from equity.
Rising Delinquencies in MSR Portfolio: Delinquencies in the owned MSR portfolio are slowly on the rise, reflecting potential challenges in asset performance amid changing market conditions.
Balance Sheet Reduction Impact: The company aims to shrink its balance sheet, which may indicate a reduction in growth opportunities and could limit future revenue generation.
RITM FAQs
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RITM Earning Call Sentiment
Rithm Capital Corp. (NYSE:RITM) Q4 2024 Earnings Call Transcript
RITM.N
0.51%Positive
The earnings call highlighted strong financial performance, with EPS exceeding expectations and improved margins. Despite some vagueness in the Q&A, the company's strategic plans, such as asset management growth and direct lending expansion, suggest a positive outlook. The dividend yield of 9.2% and strong return on equity further support a positive sentiment. Overall, the financial health and strategic initiatives point towards a positive stock price movement in the near term.
