Ready Capital Corporation (NYSE:RC) is a real estate finance company that specializes in providing financing solutions for small to medium-sized businesses. Operating in a competitive market alongside peers like Blackstone Mortgage Trust and Starwood Property Trust, RC is gearing up to release its quarterly earnings on March 3, 2025. Wall Street's expectations are set at earnings per share (EPS) of $0.21 and revenue of approximately $228.6 million.
Analysts are forecasting RC to report earnings of $0.21 per share for the quarter ended December 2024, marking a 19.2% decline from the previous year. However, this anticipated drop in EPS is contrasted by a projected revenue increase of 5.5%, which would bring the figure to $55.44 million. This suggests that Ready Capital is expanding its business operations, despite facing profitability challenges.
The consensus estimate for RC's earnings per share has remained stable over the past month, a factor that is often viewed by investors as a sign of predictability and reliability in a company's financial outlook. Stability in earnings estimates is significant, as it has been linked to short-term stock price performance.
However, RC's financial metrics reveal some challenges. The company's negative price-to-earnings (P/E) ratio stands at -8.84, indicating current losses. Other ratios, such as the price-to-sales ratio at 1.28 and the enterprise value to sales ratio at 8.15, alongside the enterprise value to operating cash flow ratio at 27.88, reflect the company's valuation in relation to its sales and cash flow. Furthermore, the debt-to-equity ratio of 2.83 and a current ratio of 0.41 may signal potential liquidity issues and a higher reliance on debt, underscoring the challenges RC faces in terms of profitability and financial stability.
