Compared to Estimates, Rocket Companies (RKT) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2023, Rocket Companies (RKT) reported revenue of $1.2 billion, down 7.1% over the same period last year. EPS came in at $0.00, compared to -$0.08 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.02 billion, representing a surprise of +17.47%. The company delivered an EPS surprise of +100.00%, with the consensus EPS estimate being -$0.02.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Rocket Companies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Loan servicing loss- Servicing fee income: $344.06 million versus the five-analyst average estimate of $345.20 million. The reported number represents a year-over-year change of -5.5%.
Revenue- Other income: $236.28 million versus $200.65 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +43.6% change.
Revenue- Gain on sale of loans, net: $572.12 million compared to the $551.09 million average estimate based on five analysts.
Revenue- Interest income, net: $37.94 million compared to the $39.28 million average estimate based on five analysts.
Revenue- Loan servicing loss, net: $356.83 million versus the four-analyst average estimate of $258.82 million.
Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $241.50 million compared to the $254.66 million average estimate based on three analysts. The reported number represents a change of +72.8% year over year.
Revenue- Gain on sale of loans- Fair value of originated MSRs: $330.63 million versus the three-analyst average estimate of $283.31 million. The reported number represents a year-over-year change of -22.4%.
Revenue- Interest income- Interest income: $93.87 million versus the two-analyst average estimate of $75.56 million. The reported number represents a year-over-year change of -2%.
View all Key Company Metrics for Rocket Companies here>>>
Shares of Rocket Companies have returned -1.3% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Rocket Companies, Inc. (RKT) : Free Stock Analysis Report
