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01/11 04:04
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reveals strong financial metrics, including a significant earnings growth and a robust dividend yield. The Q&A section indicates a positive outlook, with active M&A pipeline and opportunities in subservicing and securitization markets. However, competitive pressures and regulatory issues pose risks. The stock is undervalued, trading at 83% of book value, suggesting potential for price appreciation. Overall, the positive aspects, including strong earnings, optimistic guidance, and shareholder returns, outweigh the negatives, leading to a positive sentiment rating.
Earnings Per Share (EPS) $0.52, an 8% year-over-year growth.
GAAP Net Income $36.5 million or $0.07 per diluted share, a 2% return on equity.
Earnings Available for Distribution (EAD) $275 million, $0.52 per diluted share, a 17% return on equity.
Book Value $6.6 billion, with a book value per share of $12.39.
Common Stock Dividend Yield 8.7%, with $0.25 per common share in dividends paid.
Cash and Liquidity $1.9 billion at the end of Q1.
Genesis Capital Production A little under $1 billion in production, a 7% increase year-over-year.
Sculptor AUM $35 billion of AUM with $1.4 billion of gross inflows.
Newrez Pre-tax Income $270 million, up 14% year-over-year, delivering a 19% ROE.
Newrez Funded Volume $11.8 billion, up 9% in funded volume and 54% in pre-tax income year-over-year.
Servicing Portfolio $845 billion, with $242 million of pre-tax income, up 7% quarter-over-quarter.
Delinquencies 60-day delinquencies down 30 basis points to 3.1%.
Sculptor’s Real Estate Fund V: Now has commitments up to $3.2 billion, the largest real estate fund in Sculptor’s history.
MSR Funds: Rolling out MSR funds this quarter.
Rithm Property Trust: Rebranded from Great Ajax, now on a good path after being turned from a losing business to breakeven.
SPAC: Pricing a $230 million SPAC targeting $1 billion to $1.5 billion.
Genesis Capital: Funded volume a little under $1 billion, 7% increase year-over-year.
Newrez: Top three servicer and top five originator with a servicing portfolio of roughly $850 billion.
Sculptor: $35 billion of AUM with $1.4 billion of gross inflows across the platform.
Earnings Available for Distribution: $275 million, $0.52 per diluted share, representing an 8% year-over-year growth.
Pre-tax Income: $270 million for Newrez, up 14% year-over-year.
Cost of Service: $140, significantly outperforming the industry.
Growth Strategy: Focus on partnerships with LPs and expanding investment verticals.
Multi-family Presence: Looking to grow multi-family origination.
Operational Excellence: Focus on process efficiency and AI initiatives.
Market Volatility: The company acknowledges ongoing market volatility, which poses risks to performance despite strong results.
Competitive Pressures: Increased competition in the loan origination market has led to margin compression, which could impact profitability.
Regulatory Issues: The company references the importance of reviewing risk factors in their SEC filings, indicating potential regulatory challenges.
Economic Factors: The current economic environment, including interest rates and market conditions, affects the performance of the mortgage servicing rights (MSR) business.
Supply Chain Challenges: The company is looking to grow its multi-family presence, indicating potential challenges in the supply chain for housing.
Sculptor’s Real Estate Fund V: Now has commitments up to $3.2 billion, the largest real estate fund in Sculptor’s history.
MSR Funds: Rolling out MSR funds this quarter.
Growth of Off-Balance Sheet Capital: Focus on growing origination businesses and funds without increasing balance sheet size.
Expansion of Investment Verticals: Growing Rithm Property Trust and launching funds in energy transition and infrastructure.
SPAC Initiatives: $230 million SPAC targeting between $1 billion and $1.5 billion.
Earnings Available for Distribution (EAD) Growth: Expected to continue between 15% and 20% annually.
Book Value: Current book value is $12.39, with a target trading range of $13.69 to $23.
Dividend Yield: Common stock dividend yield is 8.7%, with $0.25 per common share in dividends.
Pre-Tax Income: Newrez reported $270 million in pre-tax income, up 14% year-over-year.
Servicing Portfolio: Servicing portfolio of $845 billion, with continued growth in third-party servicing.
Common Stock Dividend: $0.25 per common share in dividends paid, representing an 8.7% yield.
Shareholder Return Plan: The company is focused on unlocking shareholder value and believes its equity is severely undervalued, trading at approximately 83% of book value.
The earnings call summary presents a mixed picture. Positive factors include strong growth in Genesis Capital EBITDA, direct origination, and non-agency assets. However, the Q&A reveals uncertainties about strategic actions and capital raising, with management avoiding specifics. The lack of dividend increase and share buybacks, despite recent growth, further tempers optimism. These factors combined with the absence of concrete guidance adjustments lead to a neutral sentiment.
The earnings call reveals strong financial performance, with significant growth in Newrez originations and pretax income, as well as strategic expansions in asset management and non-QM markets. The Q&A highlights management's focus on growth and efficiency, though some responses lacked clarity. Positive factors include strong earnings, optimistic guidance, and potential new partnerships, outweighing concerns about vague responses, leading to a positive sentiment prediction.
The earnings call summary reveals strong financial metrics, including a significant earnings growth and a robust dividend yield. The Q&A section indicates a positive outlook, with active M&A pipeline and opportunities in subservicing and securitization markets. However, competitive pressures and regulatory issues pose risks. The stock is undervalued, trading at 83% of book value, suggesting potential for price appreciation. Overall, the positive aspects, including strong earnings, optimistic guidance, and shareholder returns, outweigh the negatives, leading to a positive sentiment rating.
The earnings call highlights strong financial performance, including consistent earnings growth, a high dividend yield, and improved book value. The Q&A section shows management's proactive approach to unlocking shareholder value and pursuing growth opportunities. However, there is some uncertainty regarding specific fee and fundraising targets. The positive aspects, such as strong earnings and optimistic guidance, outweigh the uncertainties, suggesting a positive stock price movement in the short term.
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