New temporary buydown option eases the transition into homeownership with Rocket Mortgage covering the cost of a lower interest rate for two years DETROIT, Aug. 26, 2024 /PRNewswire/ -- Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies (NYSE: RKT), today introduced "Welcome Home RateBreak," a lender-paid 2-1 temporary buydown program. Buyers can enjoy significant savings with a mortgage rate reduced by two percentage points in the first year, then one percentage point in t ...

Financial Performance - Net income for the same period was $177.9 million, reflecting a 28% increase compared to $139.2 million in the prior year[144]. - Adjusted EBITDA for the three months ended June 30, 2024, was $224.8 million, a significant increase from $18.2 million in the same period in 2023[144]. - The net income for the six months ended June 30, 2024, was $468.6 million, a turnaround from a net loss of $272.3 million in the same period in 2023[145]. - Adjusted EBITDA for the six months ended June 30, 2024, was $399.1 million, compared to an Adjusted EBITDA loss of $60.8 million in the same period in 2023[145]. - The company reported total revenue of $1,300.7 million for the three months ended June 30, 2024, compared to $1,236.2 million in the same period in 2023[154]. - Adjusted revenue for the three months ended June 30, 2024, was $1,228.2 million, up from $1,001.7 million in the same period in 2023[154]. - The company’s adjusted net income for the three months ended June 30, 2024, was $121.0 million, compared to a loss of $33.0 million in the same period in 2023[155]. - Net income attributable to Rocket Companies for the three months ended June 30, 2024, was $1,295 million, compared to a loss of $7,438 million for the same period in 2023[157]. - Adjusted net income for the six months ended June 30, 2024, was $204,575 million, a significant improvement from a loss of $143,624 million in the same period of 2023[160]. Loan Origination and Servicing - The company originated $24.7 billion in residential mortgage loans for the three months ended June 30, 2024, a 10% increase from $22.3 billion in the same period in 2023[144]. - For the six months ended June 30, 2024, the company originated $44.9 billion in residential mortgage loans, a 14% increase from $39.3 billion in the same period in 2023[145]. - Closed loan origination volume for the three months ended June 30, 2024, reached $24,661,690 million, up from $22,330,333 million in 2023, representing an increase of approximately 10.4%[164]. - The total serviced UPB (unpaid principal balance) for loans, including subserviced, was $534,557,627 million as of June 30, 2024, compared to $503,693,198 million in 2023, indicating growth of about 6.1%[164]. - The number of MSRs (mortgage servicing rights) loans serviced increased to 2,459.5 thousand as of June 30, 2024, from 2,312.6 thousand in 2023, representing a growth of about 6.4%[164]. - The total serviced UPB as of June 2024 was $534.6 billion, an increase from $503.7 billion in June 2023[196]. - The total serviced delinquency count (60+) as a percentage of total loans was 1.26% in June 2024, compared to 1.10% in June 2023[196]. Revenue and Income Sources - Gain on sale of loans, net for Q2 2024 was $758,556, up 27.7% from $594,469 in Q2 2023[185]. - Loan servicing fee income for Q2 2024 was $354,677, slightly up from $343,591 in Q2 2023[185]. - Interest income, net increased to $31,122 in Q2 2024 from $21,245 in Q2 2023, representing a 46.5% increase[185]. - Other income for Q2 2024 was $269,308, up from $234,545 in Q2 2023[185]. - Interest income, net for the six months ended June 30, 2024, was $68.7 million, an increase of $15.8 million, or 30%, compared to $52.9 million for the same period in 2023[201]. - Direct to Consumer Adjusted revenue for the three months ended June 30, 2024, was $908.8 million, an increase of $120.1 million, or 15%, compared to $788.7 million for the same period in 2023[213]. - Partner Network Adjusted revenue for Q2 2024 was $187.8 million, an increase of $65.3 million, or 53%, compared to $122.5 million in Q2 2023, primarily driven by Gain on sale[216]. Expenses and Financial Health - Total expenses for Q2 2024 were $1,108,680, a marginal increase from $1,097,857 in Q2 2023[185]. - Total expenses for the three months ended June 30, 2024, were $1.1 billion, flat compared to the same period in 2023, with general and administrative expenses increasing by $32.5 million, or 16%[206]. - Marketing and advertising expenses for the six months ended June 30, 2024, were $417.2 million, an increase of $16.8 million, or 4%, compared to $400.4 million for the same period in 2023[207]. - Salaries, commissions, and team member benefits for Q2 2024 were $553,420, down from $579,139 in Q2 2023[185]. Liquidity and Capital Structure - Total liquidity as of June 30, 2024, was $8.6 billion, including $1.3 billion in cash and cash equivalents[224]. - Equity increased to $8.8 billion as of June 30, 2024, up by $449.1 million, or 5%, compared to $8.4 billion as of June 30, 2023[227]. - Cash and cash equivalents increased by $419.5 million, or 46%, to $1.3 billion as of June 30, 2024, compared to $917.8 million a year earlier[226]. - The company had 17 different funding and financing facilities with an aggregate available amount of $22.6 billion as of June 30, 2024[221]. - The company was in compliance with all financial covenants as of June 30, 2024[225].

The 25-city showcase will spotlight both household names and featured acts in premiere clubs across the country, including Improv venues in multiple stops DETROIT, Aug. 6, 2024 /PRNewswire/ -- Rocket Mortgage – the nation's largest retail mortgage lender and part of Rocket Companies (NYSE: RKT) – today announced the launch of the Rocket Comedy Tour in partnership with comedian, writer and director Mike Young. The 25-stop nationwide tour is set to bring headlining acts alongside Young to intimate theaters ac ...

Financial Data and Key Metrics Changes - The company reported adjusted revenue of $1.228 billion for Q2 2024, representing a 23% increase year-over-year and exceeding the high end of guidance [22][24] - Adjusted EBITDA increased to $225 million, with an EBITDA margin of 18%, marking the fifth consecutive quarter of year-over-year growth [24][31] - Adjusted net income was reported at $121 million, with adjusted diluted EPS of $0.06 for the quarter [24][31] Business Line Data and Key Metrics Changes - Home equity loan origination volume more than doubled year-over-year, reaching an all-time high in Q2 2024 [12][66] - The company generated $25.1 billion in net rate lock volume, a 13% increase year-over-year [23] - The gain on sale margin was reported at 299 basis points, an increase of 32 basis points compared to the same period last year [23][39] Market Data and Key Metrics Changes - The mortgage market is projected to be around $1.7 trillion in 2024, an 8% increase from 2023, although still below historical averages [34] - Purchase applications in the industry declined to their lowest levels in over 30 years, indicating a challenging market environment [6][22] Company Strategy and Development Direction - The company aims to transform the homeownership experience by leveraging AI to enhance client interactions and operational efficiency [21][22] - A focus on profitable market share growth is emphasized as a top strategic imperative, with innovations being rolled out at a higher cadence [41][42] - The company is actively investing in technology and servicing to reinforce growth cycles and improve client retention [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about gradual recovery in the housing market despite ongoing affordability challenges and macroeconomic uncertainties [6][34] - The company anticipates that the mortgage market conditions in Q3 will mirror those of Q2, with adjusted revenue guidance set between $1.150 billion and $1.300 billion [31][32] - Management highlighted the importance of AI investments in driving future profitability and operational efficiency [49][50] Other Important Information - The company acquired five MSR portfolios, adding 67,000 new clients and approximately $21 billion in unpaid principal balance [14][28] - The company has a strong balance sheet with $3.2 billion in available cash and $7.2 billion in mortgage servicing rights, totaling approximately $10.4 billion in value [29][30] Q&A Session Summary Question: Can you provide additional context for your overall market view and Q3 guidance? - Management indicated that the key question is not if the market will rebound, but when, with expectations for gradual improvement in 2024 and 2025 [33][34] Question: Are the share gains on the purchase side driven by specific buyer cohorts? - Management confirmed that share gains are evident in both direct-to-consumer and partner channels, with a significant focus on first-time homebuyers [41][45] Question: What is the outlook for gain on sale margins? - Management noted that gain on sale margins have improved due to reduced competition and effective execution, with expectations for stability moving forward [47][39] Question: How is the company managing expenses while investing for growth? - Management emphasized a focus on operational efficiency and prioritizing investments in technology and AI to drive future growth [64][65] Question: What is the demand outlook for home equity products? - Management reported strong demand for home equity loans, with volume doubling year-over-year, driven by clients seeking to leverage their home equity for various needs [66][67]

Core Insights - Rocket Companies reported revenue of $1.3 billion for the quarter ended June 2024, reflecting a 5.2% increase year-over-year and a surprise of +5.96% over the Zacks Consensus Estimate of $1.23 billion [1] - The earnings per share (EPS) was $0.06, compared to -$0.02 in the same quarter last year, resulting in an EPS surprise of +20.00% against the consensus estimate of $0.05 [1] Revenue Performance - Gain on sale of loans, net was $758.56 million, exceeding the average estimate of $731.73 million by five analysts, representing a year-over-year increase of +27.6% [3] - Loan servicing income from servicing fee income was $354.68 million, slightly below the estimated $359.16 million, showing a +3.2% change year-over-year [4] - Interest income, net was reported at $31.12 million, falling short of the $38.25 million estimate, indicating a year-over-year decline of -15.2% [5] - Change in fair value of mortgage servicing rights (MSRs) was -$112.94 million, better than the estimated -$211.59 million, reflecting a significant year-over-year change of -366.5% [6] - Other income amounted to $269.31 million, surpassing the average estimate of $264.67 million, with a year-over-year increase of +22.9% [7] - Loan servicing income, net was $241.74 million, significantly lower than the estimated $149.21 million, showing a year-over-year decrease of -37.4% [8] - Gain on sale of loans from fair value of originated MSRs was $345.55 million, exceeding the estimate of $310.76 million, with a year-over-year increase of +9.8% [9] - Gain on sale of loans excluding fair value of MSRs, net was $413.01 million, slightly below the estimate of $428.30 million, reflecting a year-over-year increase of +47.7% [9] - Interest income was reported at $112.42 million, surpassing the estimate of $93.28 million, indicating a year-over-year increase of +39.2% [10] Stock Performance - Shares of Rocket Companies have returned +16.9% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [10] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [10]

Core Insights - Rocket Companies (RKT) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, and showing improvement from a loss of $0.02 per share a year ago, resulting in a 20% earnings surprise [1] - The company achieved revenues of $1.3 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 5.96% and reflecting a year-over-year increase from $1.24 billion [2] - Rocket Companies has consistently surpassed consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $1.36 billion, while the estimate for the current fiscal year is $0.30 on revenues of $5.21 billion [7] - The estimate revisions trend for Rocket Companies has been unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6] Market Performance - Rocket Companies shares have increased approximately 11.8% since the beginning of the year, compared to a 15.8% gain in the S&P 500 [3] - The performance of Rocket Companies may be influenced by the overall outlook for the Technology Services industry, which is currently ranked in the top 38% of Zacks industries [8]

Rocket Companies Announces Second Quarter 2024 Results • Generated Q2'24 total revenue, net of $1.3 billion and adjusted revenue of $1.2 billion. Adjusted revenue exceeded the high end of guidance range and increased year-over-year for the fourth straight quarter • Reported Q2'24 GAAP net income of $178 million, or $0.01 per GAAP diluted earnings per share and adjusted net income of $121 million, or $0.06 per adjusted diluted earnings per share • Delivered Q2'24 adjusted EBITDA of $225 million, increasing y ...

Financial Performance - Rocket Companies reported adjusted revenue of $1.228 billion, exceeding the Street consensus estimate of $1.219 billion, marking the fourth consecutive quarter of year-over-year revenue growth [1] - The company achieved earnings per share of 6 cents, surpassing the Street consensus estimate of 5 cents per share [2] - Closed loan origination volume reached $24.7 billion in the quarter, reflecting a 10.4% increase year-over-year [2] Future Outlook - The company anticipates adjusted revenue to be between $1.15 billion and $1.3 billion in the third quarter [3] - Rocket Companies will host its first Investor Day on September 10 in downtown Detroit [3] Strategic Initiatives - The CEO highlighted the company's focus on improving processes, teams, marketing, and technology to grow purchase market share year-over-year [2] - The company is implementing an AI-fueled homeownership strategy to enhance the homeownership experience for clients [3] Stock Performance - Rocket shares declined by 2% to $15.03 in after-hours trading, with a 52-week trading range of $7.17 to $16.65 [4]

Core Viewpoint - Wall Street analysts predict Rocket Companies (RKT) will report quarterly earnings of $0.05 per share, reflecting a significant year-over-year increase of 350%, while revenues are expected to decline slightly by 0.7% to $1.23 billion [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 2.2% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Revenue- Loan servicing income- Servicing fee income' to be $359.16 million, representing a year-over-year increase of 4.5% [5]. - The expected 'Revenue- Loan servicing income- Change in fair value of MSRs' is projected at -$211.59 million, indicating a drastic decline of 599.3% from the previous year [5]. - 'Revenue- Other income' is anticipated to reach $264.67 million, reflecting a 20.8% increase year-over-year [6]. - The consensus for 'Revenue- Gain on sale of loans, net' is $731.73 million, showing a 23.1% increase from the prior year [6]. - 'Revenue- Interest income, net' is expected to be $38.25 million, marking a 4.3% increase from the previous year [7]. - The estimated 'Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net' is projected at $428.30 million, indicating a substantial increase of 53.2% year-over-year [7]. - 'Revenue- Gain on sale of loans- Fair value of originated MSRs' is expected to be $310.76 million, reflecting a slight decline of 1.3% from the year-ago quarter [8]. - 'Revenue- Loan servicing income, net' is projected at $149.21 million, indicating a significant decrease of 61.3% year-over-year [8]. - 'Revenue- Interest income- Interest income' is expected to reach $93.28 million, suggesting a 15.5% increase year-over-year [8]. Stock Performance - Shares of Rocket Companies have increased by 21.9% over the past month, contrasting with a minimal change of 0.1% in the Zacks S&P 500 composite [9]. - With a Zacks Rank of 4 (Sell), Rocket Companies is expected to underperform the overall market in the near future [9].

Core Viewpoint - Rocket Companies (RKT) is expected to report a year-over-year increase in earnings despite lower revenues, with the consensus EPS estimate at $0.05, reflecting a significant increase of +350% compared to the previous year [2][4]. Earnings Expectations - The anticipated revenues for Rocket Companies are $1.23 billion, which is a slight decline of 0.7% from the same quarter last year [5]. - The consensus EPS estimate has been revised down by 2.22% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [6][12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -10.78% for Rocket Companies, suggesting a lower likelihood of beating the consensus EPS estimate [12]. - The stock currently holds a Zacks Rank of 4, which further complicates the prediction of an earnings beat [13][14]. Historical Performance - In the last reported quarter, Rocket Companies exceeded the expected earnings of $0.01 per share by delivering $0.04, resulting in a surprise of +300% [15]. - The company has successfully beaten consensus EPS estimates in each of the last four quarters [16]. Industry Comparison - MediaAlpha, Inc. (MAX), another player in the Zacks Technology Services industry, is expected to report earnings of $0.02 per share, representing a year-over-year increase of +106.3%, with revenues projected at $150.99 million, up 78.1% from the previous year [20]. - Despite a lower Most Accurate Estimate leading to an Earnings ESP of -50.00%, MediaAlpha holds a Zacks Rank of 2, indicating a better outlook compared to Rocket Companies [21].