Rocket Companies Inc RKT shares are up after reporting its second-quarter financial results. Here are the key takeaways from the report.
What Happened: Rocket Companies reported second-quarter revenue of $2.79 billion, missing the Street estimate of $2.9 billion. Adjusted net income was $900 million.
The company reported its fourth consecutive quarter of meeting or exceeding guided close loan volume and net rate lock. Closed loan originated volume was $83.76 billion in the quarter.
The company reported a lower gain non sale margin of 2.78%, down from 5.19% in the year-ago period and down from the first quarter.
Over 260,000 Amrock closings were recorded in the second quarter along with more than 15,600 auto car sales.
The company’s purchase closed loan volume was the highest in company history, with volume nearly double the prior year’s figure and the first quarter 2021 figure.
Rocket Auto sales were up 143% year-over-year. The company added one of the largest online sellers of used cars to its partner network in the second quarter.
Related Link: Analyzing Rocket Companies’ Unusual Options Activity
What’s Next: Rocket recently announced entry into the solar energy field and sees the huge solar market as an opportunity. A pilot program for the company’s solar division will launch in the fourth quarter. An official public launch is expected in early 2022.
“Our record purchase mortgage volume puts us well on the path to our goal of becoming the largest retail home purchase lender in the nation by the end of 2023,” said CEO Jay Farner.
The company expects its 2021 mortgage origination closed loan volume to exceed the record 2020 figure of $320 billion.
Third-quarter guidance closed loan volume hitting a range of $82 billion to $87 billion.
The company sees a net rate lock volume of $83 billion to $90 billion in the third quarter and a gain on sale margin between 2.7% and 3.0%.
RKT Price Action: Rocket shares are up 6.4% to $18.60 in after-hours trading.
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