Global asset manager Rithm Capital Corp. (RITM) is set to report first-quarter 2025 results on April 25, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 47 cents per share on revenues of $1.14 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The first-quarter earnings estimate has remained stable over the past 60 days. However, the bottom-line projection indicates a year-over-year decline of 2.1%. Mean ...

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3]. Group 1 - The analysis is intended for informational purposes and should not be considered professional investment advice [3]. - There is a clear statement that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [4]. - The article expresses that the views or opinions may not reflect those of the platform as a whole, indicating a diversity of perspectives among analysts [4].

Wall Street expects a year-over-year decline in earnings on lower revenues when Rithm (RITM) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 25, 2025, might help the stock move higher if these key numbers are better than expectations. ...

Focus of Article: The focus of this two-part article is to provide a very detailed analysis comparing Rithm Capital Corp. (NYSE:RITM) to 17 other mortgage real estate investment trust (mREIT) peers I currently fully cover. I am writing this two-part article due to the continued requests that such an analysis be specifically performed on RITM and some of the company's mREIT peers at periodic intervals. For readers who just want the summarized conclusions/results, I would suggest scrolling down to the "Conclu ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Rithm (RITM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Rithm currently has an average brokerage recommendation (ABR) of 1 ...

Rithm Capital Corp. (RITM) reached a milestone by issuing an $878-million mortgage servicing rights (MSR)-backed securitized note, marking the largest MSR-backed debt issuance in history. This is only the second-ever non-recourse MSR securitization, meaning the debt is backed solely by MSR assets rather than Rithm’s broader financials. The three-year fixed financing provides stability, ensuring predictable cash flow over the lifespan of the assets.This transaction follows Rithm’s first non-recourse MSR secu ...

In the latest trading session, Rithm (RITM) closed at $11.82, marking a +0.94% move from the previous day. This move lagged the S&P 500's daily gain of 1.08%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.Prior to today's trading, shares of the real estate investment trust had lost 2.25% over the past month. This has was narrower than the Finance sector's loss of 4.3% and the S&P 500's loss of 8.26% in that time.The upcoming earnings release of Rithm will be of great interest ...

Core Insights - The article focuses on analyzing Rithm Capital's (NYSE:RITM) recent performance and comparing it with 17 mortgage real estate investment trust (mREIT) peers, highlighting key metrics such as investment composition, leverage, hedging coverage ratio, and economic returns [1][2][3] Investment Composition and Performance - As of 12/31/2024, RITM's investment portfolio consisted of 18% fixed-rate agency MBS, 0% variable-rate agency MBS, 37% mortgage servicing rights (MSR), and 45% non-agency MBS and other mortgage-related investments [17][18] - RITM's book value (BV) per share increased from $12.31 at the end of Q3 2024 to $12.56 at the end of Q4 2024, reflecting a quarterly increase of 2.03% [20] - The economic return for RITM in Q4 2024 was 4.06%, driven by rising mortgage interest rates and U.S. Treasury yields [20][21] Leverage and Hedging - RITM's on-balance sheet leverage ratio was 2.7x, while the at-risk leverage ratio was 0.9x as of 12/31/2024, indicating a slight increase in on-balance sheet leverage and a slight decrease in at-risk leverage compared to the previous quarter [18][19] - The hedging coverage ratio for RITM was geared towards lower mortgage interest rates, which helped mitigate BV volatility during periods of declining rates [46] Comparative Analysis with Peers - RITM's trailing 24-month economic return of 21.33% was significantly higher than the average returns of its mREIT peers, indicating strong performance relative to the sector [44] - RITM's current stock price of $11.65 per share represented a 6.80% discount to the estimated current BV of $12.50, suggesting that RITM is appropriately valued compared to its peers [41][47] Diversification and Future Outlook - RITM has diversified its investment portfolio through acquisitions, including Sculptor Capital Management and Specialized Loan Servicing, which are expected to drive future growth and returns [29][50] - The company's focus on MSR and related assets positions it well to benefit from rising interest rates, as these assets typically gain value in such environments [25][37]

Company Performance - Rithm (RITM) closed at $11.82, reflecting a +1.81% increase compared to the previous day, outperforming the S&P 500's gain of 1.12% [1] - Over the past month, RITM shares appreciated by 1.31%, while the Finance sector declined by 1.89% and the S&P 500 fell by 4.13% [1] Upcoming Earnings - Rithm is expected to report an EPS of $0.47, which represents a 2.08% decrease from the same quarter last year [2] - The consensus estimate for revenue is $1.19 billion, indicating a 7.35% decline compared to the same quarter last year [2] Full-Year Estimates - The Zacks Consensus Estimates for Rithm's full-year earnings are $1.94 per share and revenue of $4.89 billion, reflecting year-over-year changes of -7.62% and -6.53% respectively [3] - Recent analyst estimate revisions suggest a positive outlook for the company's business [3] Valuation Metrics - Rithm has a Forward P/E ratio of 5.98, which is lower than the industry average of 9.36, indicating that Rithm is trading at a discount [6] - The Financial - Miscellaneous Services industry, to which Rithm belongs, has a Zacks Industry Rank of 35, placing it in the top 14% of over 250 industries [6] Zacks Rank System - Rithm currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate increasing by 0.91% over the last 30 days [5] - The Zacks Rank system has a strong track record, with 1 stocks delivering an average annual return of +25% since 1988 [5]

Core Viewpoint - Rithm Capital (NYSE: RITM) reported better-than-expected fourth quarter earnings driven by strong performance in servicing and asset management businesses [1] Group 1: Financial Performance - The company continued to support its generous dividend with distributable earnings in the fourth quarter [1] - The mortgage REIT sector is highlighted as a key area of focus for Rithm Capital [1]