Here's What Key Metrics Tell Us About Ready Capital (RC) Q3 Earnings

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Ready Capital (RC) reported $50.97 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 13.6%. EPS of $0.25 for the same period compares to $0.28 a year ago.

The reported revenue represents a surprise of -15.28% over the Zacks Consensus Estimate of $60.16 million. With the consensus EPS estimate being $0.23, the EPS surprise was +8.70%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Ready Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Servicing income, net: $5.42 million versus the four-analyst average estimate of $4.37 million. The reported number represents a year-over-year change of -66.2%.

  • Total non-interest income (loss): $56.25 million compared to the $40.44 million average estimate based on four analysts.

  • Other income: $14.82 million versus $17.70 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -19.1% change.

  • Income on unconsolidated joint ventures: $3.21 million versus $1.16 million estimated by three analysts on average.

  • Interest income: $226.54 million versus the three-analyst average estimate of $239.87 million. The reported number represents a year-over-year change of -9.6%.

  • Net realized gain (loss) on financial instruments and real estate owned: -$69.18 million versus $14.29 million estimated by three analysts on average.

View all Key Company Metrics for Ready Capital here>>>

Shares of Ready Capital have returned -1.7% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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