Earnings Preview: Rithm (RITM) Q3 Earnings Expected to Decline

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]