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Rocket Companies Falls Following Q1 EPS Miss, Revenue Beat

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Rocket Companies Falls Following Q1 EPS Miss, Revenue Beat

The parent company of Rocket Mortgage and Quicken Loans reported first-quarter earnings after close Wednesday.

What Happened: Rocket Companies Inc's (NYSE: RKT) first-quarter adjusted revenue of $4 billion was up 91% year over year, beating consensus estimates of $3.97 billion.

Earnings per share of 89 cents per share came in just shy of analysts' 90-cent estimate.

Closed loan origination volume hit $103.5 billion in the quarter. The first quarter was the strongest first quarter in company history for purchased closed loan volume. In March, the company had its highest-ever purchase application volume.

Average visitors to the company’s Rocket Homes website saw a 300% year-over-year increase.

Over 45,000 real estate agents have now signed up for Rocket Pro Insight, a 220% quarter-over-quarter increase.

The company’s newer Rocket Auto segment saw 13,600 unit sales, representing 65% year-over-year growth. Rocket partnered with AutoFi in the first quarter, giving the company access to more than 2,000 dealership partners for the Rocket Auto segment.

Related Link: Rocket Companies CEO Downplays Rising Interest Rates

What’s Next: Rocket Companies is guiding for second-quarter closed loan volume to come in a range of $82.5 billion to $87.5 billion. The company guides for net rate lock volume between $81.5 billion and $88.5 billion.

"Our flywheel only continues to accelerate as we look forward to the second quarter and the rest of 2021," the company said.

RKT Price Action: Shares of Rocket Companies are down 11% to $20.25 in after-hours trading. Shares closed up 1.38% at $22.80 in the regular trading session.

 

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