Aug 1, 11:29 AM

Rocket Companies Jumps on Earnings Beat, Sees Sales up to $1.75B

Rocket Companies reported second-quarter results that surpassed Wall Street expectations, buoyed by higher mortgage activity and ongoing cost controls. Adjusted revenue increased 9.1% from a year earlier to $1.34 billion, topping the $1.27 billion consensus. Adjusted earnings per share were $0.04, down from $0.06 a year ago but ahead of the $0.03 estimate. The Detroit-based lender generated $172 million in adjusted EBITDA, beating projections of $129.3 million. Net rate-lock volume climbed 13% to $28.43 billion, while GAAP net income was $34 million and adjusted net income $75 million. For the current quarter, Rocket expects adjusted revenue of $1.6 billion to $1.75 billion, reflecting the first full period of contributions from its recently acquired Redfin brokerage. Management said efficiency gains, including wider use of artificial-intelligence tools in loan processing, should help sustain margins. The stock jumped as much as 13% in New York trading after the results, building on a 2.4% pre-market advance.

#Rocket Companies #Wall Street #Detroit #GAAP #Rocket #Redfin #New York

Written with ChatGPT .

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