Global asset manager Rithm Capital Corp. RITM is set to report first-quarter 2025 results on April 25, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 47 cents per share on revenues of $1.14 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The first-quarter earnings estimate has remained stable over the past 60 days. However, the bottom-line projection indicates a year-over-year decline of 2.1%. Meanwhile, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year fall of 11.7%.Zacks Investment Research

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For 2025, the Zacks Consensus Estimate for Rithm Capital’s revenues is pegged at $4.83 billion, implying a decrease of 7.7% year over year. Also, the consensus mark for current year EPS is pegged at $1.97, implying a decline of around 6.2% on a year-over-year basis.

Rithm Capital beat the consensus estimate in each of the last four quarters, with the average surprise being 22%.

Rithm Capital Corp. Price and EPS SurpriseRithm Capital Corp. Price and EPS Surprise

Rithm Capital Corp. price-eps-surprise | Rithm Capital Corp. Quote

Q1 Earnings Whispers for Rithm Capital

Our proven model does not conclusively predict an earnings beat for Rithm Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

RITM has an Earnings ESP of -1.08% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s see how things have shaped up before the first-quarter earnings announcement.

What’s Shaping Rithm Capital’s Q1 Results?

Higher interest income and multiple strategic partnerships are expected to have supported its first quarter results. The Zacks Consensus Estimate for first-quarter interest income indicates 17.9% year-over-year growth. The consensus mark for asset management revenues is pegged at $80.9 million, up 6.7% year over year.

The growing profitability of its Newrez business is likely to have aided its Origination & Servicing segment. Also, the Zacks Consensus Estimate for first-quarter net gain on originated residential mortgage loans indicates a 16.7% year-over-year jump.

However, increased interest expense and warehouse line fees in the quarter under review are expected to have partially offset the positives. Higher general and administrative expenses, compensation, and benefits are likely to have increased total expenses, slashing profits, making an earnings beat uncertain. Nevertheless, its hedging strategies are likely to have provided some protection from the burden of increasing interest expenses.

Story Continues

The consensus mark for net servicing revenues is pegged at $313.4 million, signaling a 43.5% year-over-year decline. The consensus mark for other revenues indicates a 26.1% year-over-year decline. These are likely to have affected its first-quarter revenues.

Stocks That Warrant a Look

While an earnings beat looks uncertain for Rithm Capital, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Cboe Global Markets, Inc. CBOE has an Earnings ESP of +3.62% and is a Zacks #2 Ranked player.

The Zacks Consensus Estimate for Cboe Global’s bottom line for the to-be-reported quarter is pegged at $2.29 per share, which increased by 2 cents over the past week. The consensus estimate for Cboe Global’s revenues is pegged at $546.5 million, an 8.8% growth from a year ago.

Capital Southwest Corporation CSWC has an Earnings ESP of +3.23% and a Zacks Rank of 2.

The Zacks Consensus Estimate for Capital Southwest’s bottom line for the to-be-reported quarter is pegged at 62 cents per share, which remained stable over the past month. The consensus estimate for Capital Southwest’s revenues is pegged at $53.71 million, a 15.7% increase from a year ago.

TeraWulf Inc. WULF has an Earnings ESP of +100.00% and a Zacks Rank of 3.

The Zacks Consensus Estimate for TeraWulf’s bottom line for the to-be-reported quarter remained stable over the past week. The consensus estimate for TeraWulf’s revenues is pegged at $46.91 million, a 10.6% increase from a year ago.

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Cboe Global Markets, Inc. (CBOE):Free Stock Analysis Report

Capital Southwest Corporation (CSWC):Free Stock Analysis Report

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Rithm Capital Corp. (RITM):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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