Rocket Companies Inc (RKT) Reports Q3 2023 Earnings: Net Revenue of $1. ...
Rocket Companies Inc (NYSE:RKT) reports Q3 2023 net revenue of $1.203 billion and adjusted revenue of $1.002 billion, surpassing the high end of the guidance range.
The company posted a GAAP net income of $115 million, translating to $0.04 per GAAP diluted earnings per share.
Rocket Mortgage generated $22.2 billion in mortgage origination closed loan volume, with a gain on sale margin of 2.76%.
Total liquidity stood at approximately $8.7 billion as of September 30, 2023.
On November 2, 2023, Rocket Companies Inc (NYSE:RKT) announced its financial results for the third quarter ended September 30, 2023. Despite a challenging economic backdrop, the company delivered strong results, driven by innovation and the transformative power of AI.
Financial Performance
Rocket Companies reported Q3 2023 net revenue of $1.203 billion and adjusted revenue of $1.002 billion, exceeding the high end of the guidance range. The company's GAAP net income stood at $115 million, or $0.04 per GAAP diluted earnings per share. Rocket Companies demonstrated profitability across GAAP net income, adjusted net income, and adjusted EBITDA metrics.
Key Financial Highlights
Rocket Mortgage generated $22.2 billion in mortgage origination closed loan volume, marking the third consecutive quarter of gain on sale margin increase at 2.76%. The company also gained purchase market share in the quarter, both year-over-year and quarter-over-quarter. As of September 30, 2023, total liquidity was approximately $8.7 billion, including $1.0 billion of cash on-hand, $2.8 billion of corporate cash used to self-fund loan originations, $3.3 billion of undrawn lines of credit, and $1.7 billion of undrawn MSR lines.
Company Highlights
Rocket Companies' exclusive collaboration between Rocket Mortgage and Rocket Homes, BUY+, has continued to exceed expectations since its launch in April. The company's 1% down home loan program, ONE+, has gained traction since its launch in May, with closing volume and loan units more than tripling from June to September. The company's home equity loan product also resonated with clients, with volume more than doubling in the third quarter compared to the beginning of the year.
Outlook
For Q4 2023, Rocket Companies expects adjusted revenue of between $650 million to $800 million.
Balance Sheet and Liquidity
The company remains in a strong liquidity position, with total liquidity of $8.7 billion. As of September 30, 2023, the company's total equity was $8.5 billion.
Explore the complete 8-K earnings release (here) from Rocket Companies Inc for further details.
This article first appeared on GuruFocus.
