Here's What Key Metrics Tell Us About Rocket Companies (RKT) Q2 Earnings
For the quarter ended June 2023, Rocket Companies (RKT) reported revenue of $1.24 billion, down 11.2% over the same period last year. EPS came in at -$0.02, compared to -$0.03 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $983.18 million, representing a surprise of +25.74%. The company delivered an EPS surprise of +60.00%, with the consensus EPS estimate being -$0.05.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $343.59 million versus $359.24 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -3.9% change.
Revenue- Loan servicing loss- Change in fair value of MSRs: $42.38 million versus the five-analyst average estimate of -$218.33 million. The reported number represents a year-over-year change of -438.4%.
Revenue- Other income: $219.11 million versus $196.81 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.4% change.
Revenue- Gain on sale of loans, net: $594.47 million versus the five-analyst average estimate of $556.45 million.
Revenue- Interest income, net: $36.69 million versus the five-analyst average estimate of $45.34 million.
Revenue- Loan servicing loss, net: $385.97 million compared to the $132.36 million average estimate based on four analysts.
Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $279.63 million compared to the $300.90 million average estimate based on three analysts. The reported number represents a change of -19.5% year over year.
Revenue- Gain on sale of loans- Fair value of originated MSRs: $314.84 million compared to the $267.52 million average estimate based on three analysts. The reported number represents a change of -31.5% year over year.
Revenue- Interest income- Interest income: $80.76 million compared to the $83.08 million average estimate based on two analysts. The reported number represents a change of +2% year over year.
View all Key Company Metrics for Rocket Companies here>>>
Shares of Rocket Companies have returned +11.2% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Rocket Companies, Inc. (RKT) : Free Stock Analysis Report
