The upcoming report from Rithm (RITM) is expected to reveal quarterly earnings of $0.47 per share, indicating a decline of 2.1% compared to the year-ago period. Analysts forecast revenues of $1.14 billion, representing a decrease of 11.7% year over year.
The consensus EPS estimate for the quarter has undergone an upward revision of 3.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Rithm metrics that are commonly monitored and projected by Wall Street analysts.
Analysts forecast 'Revenues- Interest income' to reach $528.58 million. The estimate indicates a change of +17.9% from the prior-year quarter.
The average prediction of analysts places 'Revenues- Gain on originated residential mortgage loans, held-for-sale, net' at $174.49 million. The estimate points to a change of +16.7% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenues- Other revenues' should arrive at $43.11 million. The estimate indicates a change of -26.1% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenues- Asset management revenues' of $80.93 million. The estimate suggests a change of +6.7% year over year.
The consensus estimate for 'Revenues- Servicing revenue, net' stands at $313.37 million. The estimate indicates a change of -43.5% from the prior-year quarter.
View all Key Company Metrics for Rithm here>>>
Over the past month, shares of Rithm have returned -15.4% versus the Zacks S&P 500 composite's -8.9% change. Currently, RITM carries a Zacks Rank #2 (Buy), suggesting that it may outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rithm Capital Corp. (RITM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
