Overview

* Rithm Capital ( RITM ) Q2 adjusted EPS of $0.54 beats analyst expectations, per LSEG data

* Company announces strategic partnership for $500 mln residential transition loans

* Rithm Capital ( RITM ) sees steady growth in asset management and mortgage origination

Outlook

* Company plans to expand asset management capabilities

Result Drivers

* MORTGAGE ORIGINATION - Newrez LLC posted pre-tax income of $275.1 mln, with origination funded production volume increasing 12% YoY

* ASSET MANAGEMENT GROWTH - Sculptor Capital's AUM grew to $36 bln, with $1.7 bln in gross fundraising inflows

* INVESTMENT ACTIVITY - Completed $504 mln non-qualified mortgage securitization and invested $2.2 bln in residential mortgage assets

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net $419.81

Servicin mln

g

Revenue

Q2 Beat $0.54 $0.52 (8

Adjusted Analysts

EPS )

Q2 EPS $0.53

Q2 Net $283.90

Income mln

Q2 $0.25

Dividend

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 ( RITM ) is $14.00, about 12.9% above its July 25 closing price of $12.19

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(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.)