NYSE$RITM

New Residential Investment Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

New Residential reported strong results across all of its business lines and operating companies.

New Residential Investment Corp. reported a GAAP net income of $277.6 million, or $0.65 per diluted common share, and core earnings of $144.8 million, or $0.34 per diluted common share for the first quarter ended March 31, 2021. The company's performance was driven by improvements in its MSR portfolio and expansion of its operating platform.

  • GAAP Net Income of $277.6 million, or $0.65 per diluted common share
  • $222.8 million Pre-Tax Income from Origination and Servicing
  • Core Earnings of $144.8 million, or $0.34 per diluted common share
  • Servicing portfolio grew to $304.6 billion in UPB

Headline financials

Total Revenue

$1.17B

Previous: $186M+531.1%
EPS (adj)

$0.34

Previous: $0.48-29.2%
Total Servicing UPB

$305B

Previous: $276B+10.4%
Origination Funded Production Volume

$27.2B

Previous: $11.4B+138.6%
Capital Expenditures

-$74.9M

Previous: -$6.44M-1063.3%
Free Cash Flow

$226M

Previous: -$1.61B+114.0%
Net Income

$301M

Previous: -$1.61B+118.7%
Operating Income

$661M

Previous: -$218M+403.2%
Gross Profit

$1.16B

Previous: $85M+1269.2%
Cash & Equivalents

$1.04B

Previous: $360M+188.1%
Total Assets

$35.2B

Previous: $24.2B+45.4%

Revenue & EPS history

NRZ · Revenue · Quarterly

$1.17B

Q1 2021+531.1%vs Q1 2020
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

NRZ · $504M total across 2 segments · Q1 2021

  • Residential Transitional Lending
    $479M
  • Corporate Category
    $25.5M-27.0%

Forward guidance

New Residential anticipates continued normalization of origination margins, sees additional room to grow origination market share, and compelling opportunities for earnings growth in its investment portfolio. The company estimates Q2'21 Funded Origination Volume of approximately $22 billion to $24 billion UPB and Servicing Portfolio UPB of approximately $305 billion UPB.

Tailwinds

  • Ability to capture additional market share and increase borrower retention
  • MSR portfolio to benefit from anticipated market conditions
  • Continued normalization of origination margins
  • Ability to capitalize on opportunities for earnings growth
  • Ability to complete the acquisition of Caliber Home Loans, Inc. on a timely basis

Headwinds

  • Normalization of origination margins
  • Market conditions impacting MSR portfolio
  • Integration challenges with Caliber Home Loans, Inc.
  • Uncertainties in achieving estimated Q2'21 Funded Origination Volume
  • Fluctuations in Servicing Portfolio UPB

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.9%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.2%

Avg return

30 days after

68%

38 / 56 earnings

Positive

+12.5%

Q1 2022

Best reaction

-11.5%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-3.3%-8.5%
Q4 2025+6.0%-0.6%-9.4%
Q3 2025+0.3%+0.5%+5.1%
Q1 2025+1.3%+7.5%+7.0%
Q4 2024+3.7%+3.1%+2.9%
Q3 2024+3.0%+0.1%+6.8%
Q2 2024-1.7%-6.6%+3.6%
Q1 2024-0.6%+0.9%-1.2%
Q4 2023-4.2%-1.7%+3.2%
Q3 2023+2.8%+4.2%+13.7%
Q2 2023-0.4%+2.3%+3.4%
Q1 2023+1.9%+2.9%+11.5%
Q4 2022+1.8%+3.6%-11.2%
Q3 2022-1.4%+0.8%+5.9%
Q2 2022-6.2%-9.1%-16.1%
Q1 2022+12.5%+6.6%+9.4%
Q4 2021+6.1%+3.7%+1.3%
Q3 2021+0.7%-0.3%-5.6%
Q2 2021+3.1%+2.6%+13.6%
Q1 2021-2.2%-2.4%+1.7%
Q4 2020-2.9%-3.8%+7.1%
Q3 2020-11.5%-14.1%+11.2%
Q2 2020-1.1%-1.5%-1.8%
Q1 2020+0.8%+8.9%+36.3%
Q4 2019+1.7%+2.7%-7.3%
Q3 2019-0.6%-0.3%-2.7%
Q2 2019+1.2%-0.9%-9.3%
Q1 2019-0.9%-0.8%-9.3%
Q4 2018+1.7%+1.9%+0.0%
Q3 2018-1.1%+0.5%-5.0%
Q2 2018-4.4%-3.8%-1.3%
Q1 2018+3.2%+4.3%+6.8%
Q4 2017+1.1%+1.5%+2.3%
Q3 2017+2.2%+3.8%+4.5%
Q2 2017+6.9%+4.9%+2.1%
Q1 2017+1.7%+0.4%-3.5%
Q4 2016+3.0%+3.1%+2.9%
Q3 2016+0.4%+3.0%+11.2%
Q2 2016+3.4%+4.2%+4.6%
Q1 2016+5.2%
Q4 2015+4.3%
Q3 2015-2.4%
Q2 2015+0.1%
Q1 2015+1.7%
Q4 2014+1.6%
Q3 2014+0.5%
Q2 2014+5.2%
Q1 2014-2.5%
Q4 2012+0.9%
Q4 2013+1.9%
Q3 2012+5.6%
Q3 2013-7.1%
Q2 2012-0.9%
Q1 2012+1.9%
Q2 2013+1.9%
Q1 2013+1.9%

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