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.
Over the last week I Increased my position in $RKT on the pullback and got chopped up in $DHI as I anticipated a strong rally in homebuilders. Thankfully still long Rocket but took a loss in D.R Horton .... it pains me because I think this is the start of a larger move. $IWM
$RKT weekly ⬆️ #volume https://t.co/P1kMdSGQeY
Monthly wick set ups on housing related names. $NAIL had a high volume OEL Monthly in July and now a gap up to start August for a monthly wick set up. $RKT $ITB $LEN $DHI etc