NYSE$RITM

New Residential Investment Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

New Residential Investment Corp. reported a strong third quarter, driven by solid earnings in Origination and Servicing segments.

New Residential Investment Corp. reported a GAAP net income of $77.9 million, or $0.19 per diluted common share, and core earnings of $131.6 million, or $0.31 per diluted common share. The company's Origination and Servicing segments delivered over $340 million in pre-tax earnings.

  • GAAP Net Income of $77.9 million, or $0.19 per diluted common share.
  • Core Earnings of $131.6 million, or $0.31 per diluted common share.
  • Common Dividend of $62.4 million, or $0.15 per common share.
  • The servicing portfolio grew to $287.2 billion in UPB.

Headline financials

Total Revenue

$685M

Previous: $202M+238.7%
EPS (adj)

$0.31

Previous: $0.50-38.0%
Total Servicing UPB

$287B

No prior period
Origination Funded Production Volume

$18.1B

No prior period
Capital Expenditures

-$5.35M

Previous: -$44.5M+88.0%
Free Cash Flow

$98.6M

Previous: $200M-50.7%
Net Income

$104M

Previous: $245M-57.5%
Operating Income

$201M

Previous: -$59M+440.3%
Gross Profit

$670M

Previous: $192M+250.0%
Cash & Equivalents

$841M

Previous: $738M+13.9%
Total Assets

$30.4B

Previous: $41.3B-26.5%

Revenue & EPS history

NRZ · Revenue · Quarterly

$685M

Q3 2020+238.7%vs Q3 2019
Beat estimate in 4 of 16 quarters(25%)
ActualEstimate

Revenue by segment

NRZ · $64.2M total across 2 segments · Q3 2022

  • Asset Management
    $42.3M
  • Corporate Category
    $21.8M-41.2%

Forward guidance

New Residential believes its investment portfolio is well positioned and intends to maintain high levels of cash to deploy opportunistically. Heading into the end of the year, the company is confident in its ability to grow book value and generate earnings for shareholders.

Tailwinds

  • MSR portfolio stands to benefit as rates rise and multiples improve
  • Maintain high levels of cash to deploy opportunistically
  • Ability to grow book value
  • Ability to generate earnings for our shareholders
  • Annualized savings of approximately $50 million from all Q3’20 refinancing activity

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 Q3 2020

Historical avgQ3 2020

+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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