Compared to Estimates, Rocket Companies (RKT) Q2 Earnings: A Look at Key Metrics

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]