What's the outlook for RITM's EPS beyond 2025?
4/5/2025 02:22pm
**Rithm Capital's EPS outlook beyond 2025 appears cautious.** Here's a detailed analysis:
1. **Current Estimates and Recent Performance**: Analysts at Wedbush have reduced their Q1 2025 earnings estimates for Rithm Capital from $0.50 to $0.46 per share. This reduction suggests a more conservative outlook for the immediate future. Additionally, the consensus estimate for Rithm Capital's current full-year earnings is $1.93 per share.
2. **Historical Performance and Analyst Expectations**: Rithm Capital has a track record of beating EPS estimates, with an 88% success rate over the last two years. However, the recent reduction in estimates by Wedbush indicates a more tempered expectation for the coming years.
3. **Dividend and Financial Health**: Rithm Capital has a history of dividend payments, with a recent declaration of a quarterly dividend of $0.25 per share. This dividend yield of 8.63% suggests a stable financial outlook, but it does not directly correlate with EPS growth.
4. **Market Position and Future Prospects**: Rithm Capital's focus on real estate investment suggests that its earnings may be influenced by the broader economic conditions and the performance of the real estate market. The company's ability to maintain or improve its profit margins will be crucial in determining its EPS outlook.
In conclusion, while Rithm Capital's strong dividend history and past track record of beating EPS estimates suggest resilience, the recent estimate reductions and the need to rely on market conditions for future revenue growth indicate a cautious outlook for RITM's EPS beyond 2025.