Core Viewpoint - Rithm Capital offers a high dividend yield of 9.5%, which is unusual for stocks, indicating potential investor concerns about the underlying business [1][2]. Group 1: Business Model and Operations - Rithm Capital is often classified as a mortgage REIT but operates differently from traditional mortgage REITs like AGNC Investment, focusing on a diversified business model [4]. - The company generates investment income from its mortgage-backed securities (MBS) portfolio, which is a smaller part of its overall operations, alongside a single-family rental business owning 4,266 units [5]. - In the first half of 2024, Rithm originated loans totaling $1.7 billion, contributing to its diverse revenue streams [6]. Group 2: Mortgage Servicing Rights - Rithm Capital holds full rights to service mortgages with an outstanding balance of $587 billion as of June [7]. - The mortgage servicing rights (MSR) portfolio accounts for approximately 35% of total revenue, but a potential refinancing wave could turn this segment into a liability [9]. Group 3: Diversification and Acquisitions - To mitigate reliance on the mortgage industry, Rithm acquired Sculptor in late 2023, which had $34 billion in assets under management, further diversifying its portfolio [10]. Group 4: Financial Performance - Rithm Capital's book value was $6.1 billion at the end of June, while its market cap was approximately $10.48 per share [11]. - The company earned $0.44 per share in the second quarter and $1.19 per share over the past 12 months, significantly exceeding its quarterly dividend obligation of $0.25 per share [12].

Core Viewpoint - Rithm Capital Corp. (RITM) is expected to report third-quarter 2024 results on October 29, 2024, with earnings estimated at 43 cents per share and revenues of $1.11 billion, indicating a year-over-year earnings decline of 25.9% but a revenue growth of 2.3% [1] Financial Estimates - The Zacks Consensus Estimate for Rithm Capital's revenues for the current year is $4.79 billion, reflecting a year-over-year increase of 32.2, while the EPS estimate is $1.81, indicating a decline of approximately 12.1% year-over-year [1] - Rithm Capital has consistently beaten consensus estimates in the last four quarters, with an average surprise of 36.3% [1] Earnings Prediction - The current model does not predict an earnings beat for Rithm Capital, as it has an Earnings ESP of -1.18% and a Zacks Rank of 4 (Sell) [2] Revenue Drivers - Revenue growth is expected to be supported by higher fees, interest income, and multiple acquisitions, with a favorable interest rate environment contributing to enhanced returns from specific investments and consumer loans [3] - The net gain on originated residential mortgage loans is projected to increase by 12.6% year-over-year, aided by the profitability of the Newrez business [4] Revenue Challenges - Despite expected revenue growth, net servicing revenues are projected to decline by 32.1% year-over-year, and asset management revenues are estimated at $85.1 million, down from $109.4 million sequentially [4] - High interest rates are likely to increase interest expenses and warehouse line fees, along with higher general and administrative expenses, which may impact profits and create uncertainty regarding an earnings beat [4] Stock Performance - Rithm Capital's stock has decreased by 1.2% year-to-date, underperforming the industry growth of 9%, while peers like Annaly Capital Management and AGNC Investment Corp. have seen slight gains [5] - The stock has significantly lagged behind the S&P 500, which has rallied by 21.5% during the same period [5]

Company Overview - Rithm (RITM) is expected to report a year-over-year decline in earnings of 25.9%, with an estimated EPS of $0.43 for the quarter ended September 2024 [2] - Revenue is projected to be $1.11 billion, reflecting a 2.3% increase from the previous year [2] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 2.84% over the last 30 days, indicating a bearish sentiment among analysts regarding Rithm's earnings prospects [3][6] - The Most Accurate Estimate for Rithm is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.18% [6] Earnings Surprise History - In the last reported quarter, Rithm exceeded expectations by posting earnings of $0.47 per share against an expected $0.42, achieving a surprise of +11.90% [7] - Rithm has beaten consensus EPS estimates in the last four quarters [7] Market Sentiment and Predictions - Rithm currently holds a Zacks Rank of 4 (Sell), which complicates the prediction of an earnings beat [6] - The combination of a negative Earnings ESP and a low Zacks Rank suggests that Rithm may not be a compelling candidate for an earnings beat [8] Industry Comparison - In contrast, Virtu Financial (VIRT) is expected to report earnings of $0.77 per share, representing a year-over-year increase of 71.1%, with revenues projected at $369.38 million, up 24% [9] - Virtu Financial has a positive Earnings ESP of 0.97% and a Zacks Rank of 2 (Buy), indicating a higher likelihood of beating consensus EPS estimates [9]

Core Insights - Rithm (RITM) is positioned to potentially continue its earnings-beat streak, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 14.49% [1][3] Earnings Performance - In the last reported quarter, Rithm achieved earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, resulting in a surprise of 11.90% [2] - In the previous quarter, Rithm was expected to post earnings of $0.41 per share but delivered $0.48 per share, leading to a surprise of 17.07% [2] Earnings Estimates - There has been a favorable change in earnings estimates for Rithm, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6] - Rithm currently has an Earnings ESP of +2.33%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]

Rithm Capital Corp. (RITM) recently announced its board's approval for third-quarter 2024 dividends for both common and preferred stockholders. The common stock dividend remains steady at 25 cents per share, the same as the previous quarter. It will be paid on Nov. 1, 2024, to stockholders of record as of Oct. 1. The company continues to maintain a higher-than-industry dividend yield. Based on the closing price of $11.78 per share on Sept. 23, the stock has a dividend yield of 8.5%, which is higher than the ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Rithm (RITM) . Rithm currently has an average brokerage recommen ...

Rithm (RITM) closed the latest trading day at $11.42, indicating a -1.38% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.17%. Heading into today, shares of the real estate investment trust had gained 4.04% over the past month, lagging the Finance sector's gain of 4.06% and outpacing the S&P 500's gain of 2.92% in that time. The investment community will be paying close ...

Recent remarks from Federal Reserve Chairman Powell have me thinking interest rate cuts may finally be on the horizon. A core theme of the economy over the last couple of years is abnormally high inflation. While politicians are often criticized or cheered for the current state of the economy, the Federal Reserve is actually the institution responsible for setting monetary policy. In an effort to combat inflation, the Federal Reserve raised interest rates 11 times throughout 2022 and 2023. In finance jargon ...

Rithm (RITM) closed the latest trading day at $11.61, indicating no change from the previous session's end. This change was narrower than the S&P 500's daily loss of 0.3%. On the other hand, the Dow registered a loss of 0.54%, and the technology-centric Nasdaq increased by 0.25%. Coming into today, shares of the real estate investment trust had gained 6.22% in the past month. In that same time, the Finance sector gained 6.22%, while the S&P 500 gained 3.42%. The investment community will be paying close att ...

08 금 Intel Zerbor Rithm: Solid Recovery Over The Past Few Weeks Rithm Capital Corp. (NYSE:RITM) investors have witnessed a solid recovery as RITM broke to a new recent high last week. As a result, investors experienced four consecutive weeks of recovery before selling pressure emerged this week. The leading mREIT has continued to diversify its business beyond its core MSR business. As a result, the company attempts to transition into other business segments that could improve its valuation multiples over ti ...