Compared to Estimates, Rithm (RITM) Q4 Earnings: A Look at Key Metrics

Core Insights - Rithm (RITM) reported a revenue of $2.1 billion for the quarter ended December 2024, marking a year-over-year increase of 196.1% and exceeding the Zacks Consensus Estimate by 70.97% [1] - The earnings per share (EPS) for the same period was $0.60, up from $0.51 a year ago, representing a surprise of 33.33% over the consensus estimate of $0.45 [1] Revenue Breakdown - Interest income was reported at $490.26 million, which is a year-over-year increase of 7.9%, but below the average estimate of $515.93 million [4] - Gain on originated residential mortgage loans, held-for-sale, net was $201.64 million, reflecting a significant year-over-year increase of 105.5% and surpassing the average estimate of $173.93 million [4] - Other revenues totaled $55.41 million, slightly below the estimated $58.85 million [4] - Asset management revenues reached $258.87 million, significantly exceeding the average estimate of $101.17 million [4] - Servicing revenue, net was reported at $1.09 billion, far exceeding the average estimate of $390.39 million [4] Stock Performance - Rithm's shares have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]