Rocket Companies(US:RKT) ZACKS·2024-07-30 14:21Core 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].