Earnings Preview: Onity Group (ONIT) Q2 Earnings Expected to Decline

Company Overview - Onity Group (ONIT) is expected to report a year-over-year decline in earnings despite higher revenues for the quarter ended June 2025, with a consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2] Earnings Expectations - The upcoming earnings report is anticipated to be released on August 5, with expectations that better-than-expected key numbers could lead to a stock price increase, while missing expectations may result in a decline [2] - The consensus estimate for Onity's quarterly earnings is $2.08 per share, reflecting a year-over-year decrease of 48.9%, while revenues are projected to be $263.75 million, representing a 7% increase from the previous year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 6.96%, indicating a reassessment by analysts regarding the company's earnings prospects [4] - The Most Accurate Estimate for Onity is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.65%, which suggests a bearish outlook from analysts [11] Earnings Surprise History - In the last reported quarter, Onity had an expected EPS of $1.79 but delivered $2.84, resulting in a positive surprise of 58.66% [12] - Over the past four quarters, Onity has beaten consensus EPS estimates three times, indicating some historical resilience [13] Industry Context - Rocket Companies (RKT), another player in the Zacks Financial - Mortgage & Related Services industry, is expected to report earnings of $0.03 per share for the same quarter, reflecting a year-over-year decline of 50%, with revenues projected at $1.25 billion, down 3.6% [17][18] - The consensus EPS estimate for Rocket Companies has been revised down by 9.1% over the last 30 days, and it currently has an Earnings ESP of -27.27%, combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18][19]