Market Overview

Earnings Outlook For New Residential Inv

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New Residential Inv (NYSE: NRZ) releases its next round of earnings this Monday, October 26. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

New Residential Inv earnings will be near $0.38 per share on sales of $661.32 million, according to analysts. In the same quarter last year, New Residential Inv posted EPS of $0.5 on sales of $202.22 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Monday, earnings would be down 24.0%. Revenue would be have grown 227.02% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.31 -0.17 0.52 0.53
EPS Actual 0.34 0.48 0.61 0.50
Revenue Estimate 111.13 M 185.46 M 219.10 M 212.10 M
Revenue Actual 115.80 M 185.52 M 216.08 M 202.22 M

Stock Performance

Shares of New Residential Inv were trading at $8.46 as of October 22. Over the last 52-week period, shares are down 45.18%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. New Residential Inv is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings