New residential investment stock climbs after fourth quarter maintenance revenue surge (NYSE:NRZ)

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New residential investment (NYSE:NRZ) the stock gains 4.4% in premarket trading after its fourth-quarter revenue topped the consensus estimate as its net revenue maintenance revenue jumped 59% from the third quarter.

Core EPS of $0.40 in the fourth quarter was in line with the average analyst estimate and was down from $0.44 in the third quarter. Revenue of $1.10 billion was up $952.7 million and beat consensus of $984.9 million.

Fourth-quarter origination segment pretax income of $101.5 million fell $177.5 million in the third quarter.

  • Total creative-funded production in the fourth quarter was $38.1 billion in principal outstanding balance, up 10% from the third quarter.
  • Total gain on sales margin of 1.65% increased from 1.61% in Q3.

Q4 maintenance segment pre-tax income of $127.5 million increased from $15.0 million in Q3. Net maintenance revenue of $310.2 million jumped from $195.3 million in the prior quarter.

  • The maintenance portfolio grew to $483 billion in UPB, up 1.5% Q/Q.
  • The company acquired ~$908m in early buyout loans and redistributed $868 in EBO loans for gains of ~$31m.

The Mortgage Servicing Rights portfolio totaled ~ UPB$629 billion as of December 31, 2021 compared to UPB$635 billion as of September 30, 2021.

Carrying value of $11.44 as of December 31, 2021 compared to $11.35 as of September 30.

For Q1 2022New Residential (NRZ) estimates funded origination volume at around $25 billion to $30 billion and UPB services portfolio at around $490 billion to $500 billion.

Conference call at 8:00 a.m. ET.

Previously non-GAAP EPS of new residential investment of $0.40 online, revenue of $1.1 billion beat $115.1 million

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