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].

Core Insights - Rocket Mortgage has been ranked 1 in client satisfaction for mortgage servicing by J.D. Power for the 10th consecutive year, totaling 22 awards in various categories [1][3][11] - The company has significantly integrated artificial intelligence (AI) into its operations, enhancing client interactions and achieving over 60% first call resolution rates [2][8] - Rocket Mortgage's servicing portfolio reached $511 billion with 2.5 million loans serviced as of March 30, 2024 [6] Client Experience - The company offers a user-friendly website and mobile app, resulting in 78% of clients opting for a paperless experience, compared to the industry average of 30% [4] - Rocket Mortgage's commitment to exceptional service has led to clients returning for subsequent home loans three times more often than the industry average [5] - Client feedback highlighted the expertise and empathy of Rocket's team, reinforcing trust and satisfaction in the homeownership journey [6] Technological Innovations - One of the AI tools, Rocket Logic – Synopsis, utilizes machine learning to enhance client interactions by transcribing calls and capturing important details, projected to save over 45,000 hours annually [8] - The company has closed more than $1.7 trillion in mortgage volume since its inception in 1985, showcasing its significant market presence [15] Company Overview - Rocket Mortgage is the largest retail mortgage lender in the U.S. and is part of Rocket Companies (NYSE: RKT), which includes various fintech brands [10][12] - The company has consistently ranked among the top third of Fortune's "100 Best Companies to Work For" for 21 consecutive years [11][13]

DETROIT, July 18, 2024 /PRNewswire/ -- Rocket Companies, Inc. (NYSE: RKT) ("Rocket Companies" or the "Company"), the Detroit-based fintech platform company including mortgage, real estate and other financial services businesses, today announced that the Company will issue its second quarter 2024 earnings on August 1, 2024. Leadership will host a conference call to discuss results at 4:30 p.m. ET on that date and a press release detailing the Company's results will be issued prior to the call. A live webcast ...

Core Viewpoint - The real estate market remains expensive, causing hesitation among investors regarding RKT stock and the mortgage financing service sector [1][2][14] Group 1: Market Conditions - Inflation has caused prices to rise significantly, and lower interest rates may not effectively address the housing affordability crisis [2] - Rocket Companies (NYSE:RKT) has seen a nearly 17% increase in stock price over the past five sessions, alongside gains for related companies like Re/Max and Redfin [4] Group 2: Investment Strategy - The J-Hook technical analysis pattern suggests that RKT could be a potential upside opportunity, indicating a cyclical pattern of price movement [5][11][15] - A recommendation is made to buy near-expiry RKT stock call options, particularly the 2024 Aug. 2 $16 call, in anticipation of a potential Federal Reserve monetary policy shift [7][10] Group 3: Risks and Considerations - The options market for RKT is characterized by low volume and high volatility, with a significant bid-ask spread of 14.28% noted [8] - The upcoming Federal Reserve policy meeting at the end of July could influence RKT stock, with speculation of a dovish pivot potentially driving prices higher [12]

AUBURN HILLS, Mich., June 24, 2024 /PRNewswire/ -- The Jeep® Wagoneer S Launch Edition, the Jeep brand's fully electric global vehicle that will first arrive in the U.S. later this year, will be making its first public appearance during this year's Rocket Mortgage Classic. The sixth-annual PGA TOUR golf tournament will be held June 25-30 at the historic Detroit Golf Club. Tickets for Thursday-Sunday are available at www.RocketMortgageClassic.com. The Jeep brand will have a display at "The Grove" on site of ...