NYSE$RC

Ready Capital Corporation · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Ready Capital reported a net loss due to reserving for non-performing loans, while Small Business Lending showed strong origination growth.

Ready Capital posted a significant net loss in Q4 2024 as it fully reserved for non-performing commercial real estate loans. Small Business Lending continued to perform well, with solid loan originations. The company also adjusted its dividend and repurchased shares as part of its capital strategy.

  • GAAP loss per share was $(1.80), driven by higher loan loss provisions.
  • Distributable loss per share was $(0.03), while distributable earnings before realized losses were $0.23.
  • Total loan originations in Q4 reached $784 million, with strong contributions from Small Business Lending.
  • Company repurchased 5.8 million shares at an average price of $7.35 per share.

Headline financials

Total Revenue

$50.1M

Previous: $316M-84.2%
EPS (adj)

-$0.03

Previous: $0.26-111.5%
Book Value Per Share

$10.61

Previous: $14.10-24.8%
Dividend Per Share

$0.13

Previous: $0.30-58.3%
Net Income

-$315M

Previous: $10.9M-2992.7%
Operating Income

-$235M

Previous: $25.8M-1010.3%

Revenue & EPS history

Ready Capital · Revenue · Quarterly

$50.1M

Q4 2024-84.2%vs Q4 2023
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

Ready Capital aims to stabilize its balance sheet and improve liquidity through accelerated resolution of non-performing loans. The company expects potential earnings recovery and upward dividend adjustments in the future.

Tailwinds

  • Fully reserved for non-performing loans to create a path to recovery.
  • Potential for higher reinvestment in high-yield originations.
  • Stock repurchase program to enhance shareholder value.
  • Strong Small Business Lending origination growth.
  • Strategic merger agreement with United Development Funding IV.

Headwinds

  • Higher interest rates and inflation pressures affecting multi-family lending.
  • Lower rent growth impacting commercial real estate portfolio.
  • Book value per share reduced due to loan loss reserves.
  • Dividend cut to align with anticipated cash earnings.
  • Continued market uncertainty affecting real estate finance sector.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-1.0%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+0.4%

Avg return

30 days after

39%

22 / 56 earnings

Positive

+16.2%

Q2 2020

Best reaction

-26.8%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-12.5%-21.3%
Q4 2025+12.2%+27.0%-6.7%
Q3 2025-1.7%-11.0%-12.4%
Q1 2025-5.3%-3.0%-1.6%
Q4 2024-26.8%-22.7%-26.3%
Q3 2024+4.7%+3.0%+5.9%
Q2 2024+0.1%-4.7%-9.8%
Q1 2024-0.9%+4.9%-1.5%
Q4 2023-5.0%+0.3%+2.1%
Q3 2023+1.0%-1.9%+5.3%
Q2 2023-0.8%-2.5%-5.1%
Q1 2023-2.0%+0.2%+8.1%
Q4 2022-9.9%-10.6%-19.0%
Q3 2022+4.4%+10.2%+6.8%
Q2 2022+1.3%+1.6%-7.2%
Q1 2022-6.5%-7.7%-3.2%
Q4 2021+6.6%+7.6%+13.5%
Q3 2021+5.4%+4.2%+2.1%
Q2 2021+2.6%+2.5%+3.5%
Q1 2021+0.9%-2.9%+7.9%
Q4 2020+4.3%+4.1%-4.0%
Q3 2020-4.0%-4.7%+12.8%
Q2 2020+16.2%+16.1%+25.7%
Q1 2020-11.1%-12.1%+40.8%
Q4 2019-18.7%-34.7%-47.6%
Q3 2019+1.8%+0.1%-1.4%
Q2 2019+1.4%-0.3%-0.3%
Q1 2019-2.2%-3.6%-3.6%
Q4 2018-4.0%-5.8%-8.0%
Q3 2018-2.9%-1.3%+0.7%
Q2 2018-0.3%-2.1%+2.1%
Q1 2018+4.2%+5.2%+11.5%
Q4 2017+2.7%+2.4%-3.4%
Q3 2017+2.3%+1.7%+6.3%
Q2 2017-1.0%+0.0%+4.4%
Q1 2017-2.0%-3.4%+0.3%
Q4 2016+4.1%+3.7%+6.7%
Q4 2015+0.4%+1.2%+5.8%
Q3 2016+1.6%+2.8%+6.3%
Q2 2016-1.9%-1.7%-3.8%
Q1 2016-0.5%
Q4 2014-0.4%
Q3 2015-5.9%
Q2 2015-1.5%
Q1 2015-0.9%
Q3 2014-2.4%
Q2 2014+7.2%
Q1 2014-0.3%
Q4 2013+0.8%
Q3 2013-3.1%
Q3 2012-3.1%
Q2 2013-0.9%
Q2 2012-0.9%
Q1 2013-1.2%
Q4 2012-1.2%
Q1 2012-1.2%

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