Rithm Capital Q3 profit beats estimates

Overview

• Rithm Capital Q3 adjusted EPS beats analyst expectations

• GAAP net income for Q3 declines compared to previous quarter

• Company announces pending acquisitions of Crestline and Paramount

Outlook

• Rithm Capital targets Q4'25 closing for Crestline acquisition

• Company expects Q4'25 closing for Paramount acquisition

• Rithm Capital expands into direct lending with Crestline acquisition

Result Drivers

• STRATEGIC ACQUISITIONS - Pending acquisitions of Crestline and Paramount enhance commercial real estate expertise and expand offerings into direct lending and insurance

• MORTGAGE PLATFORM PERFORMANCE - Newrez LLC posted increased pre-tax income and servicing UPB growth, contributing to overall results

• RESIDENTIAL LENDING GROWTH - Genesis Capital recorded significant YoY growth in residential transitional lending and sponsor base expansion

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 $Rithm Capital Corp(RITM-E)$ is $14.00, about 21.9% above its October 29 closing price of $10.93

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw92sgDca

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(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.)