Rithm Capital Q3 adjusted EPS beats estimates

Rithm Capital

Yesterday 12:35

Overview
US alternative asset manager's Q3 adjusted EPS beat analyst expectations
GAAP net income per diluted share rose sharply from prior qtr
Residential transitional lending origination volume grew 25% yr/yr

Outlook
Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers
ASSET MANAGEMENT INFLOWS - Co said asset management platform saw $569 mln of gross new capital and fund commitment inflows in Q3, supporting fee-based earnings
COMMERCIAL REAL ESTATE LEASING - Elecor Properties increased leasing activity to 1.0 mln sq ft YTD, achieving rents 22% higher across portfolio vs FY 2025
RESIDENTIAL TRANSITIONAL LENDING - Genesis Capital Q3 origination volume rose 25% YoY to $1.5 bln, with new sponsors funded up 74% YoY

Company press release: ID:nBw2q9p13a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Servicing Revenue
 
$716.65 mln
 
Q3 Adjusted EPS
Beat
$0.55
$0.50 (10 Analysts)
Q3 EPS
 
$0.38
 
Q3 Net Income
 
$217.1 mln
 
Q3 Dividend
 
$0.25
 
Q3 Servicing Fee Revenue
 
$595.37 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Rithm Capital Corp. is $13.00, about 49.8% above its October 22 closing price of $8.68
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads
Oct 21 - Rithm Property Trust Q3 distributable earnings rise on mortgage-backed securities paydowns
Oct 22 - Blackstone reports higher Q3 profit
Oct 22 - CBRE Group tops Q3 core profit expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)