Rocket Companies (RKT) Earnings Expected to Grow: Should You Buy?

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$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$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].