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Ready Capital (RC) reports Q1 loss, misses revenue estimates

Ready Capital (RC - Free Report) came out with a quarterly loss of $0.33 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -153.85%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.11 per share when it actually produced a loss of $0.09, delivering a surprise of +18.18%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Ready Capital, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of -$15.1 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 217%. This compares to year-ago revenues of $14.5 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Ready Capital shares have lost about 6.4% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's next for ready capital?

While Ready Capital has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ready Capital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.12 on $13.93 million in revenues for the coming quarter and -$0.47 on $53.48 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Finance sector, Nu Holdings Ltd. (NU - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Nu Holdings Ltd.'s revenues are expected to be $4.97 billion, up 53% from the year-ago quarter.


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