Rithm Capital Q3 adjusted EPS beats estimates

By Reuters News


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:


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.)

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