Rocket Companies Reports Third-Quarter Earnings
Rocket Companies, Inc. (RKT) reported its third-quarter earnings on Tuesday after the market close. The company's earnings per share of eight cents met analyst expectations. However, revenue of $647 million fell short of the $1.28 billion analysts had predicted and represented a decrease from the $1 billion in sales reported during the same period last year.
Despite the revenue miss, Rocket Mortgage, a subsidiary of Rocket Companies, saw positive growth. Net rate lock volume increased by 43% year-over-year to $29.8 billion, while closed loan origination volume rose by 28% to $28.5 billion. Additionally, the gain on sale margin increased by 2 basis points to 2.78%.
As of September 30, 2024, Rocket Companies had total liquidity of $8.3 billion, including $1.2 billion in cash, $1.8 billion in corporate cash used for self-funding loan originations, $3.3 billion in undrawn lines of credit, and $2 billion in undrawn MSR lines of credit.
"We delivered strong third-quarter results, expanding purchase and refinance market share, and increasing adjusted revenue by 32% year-over-year. Our adjusted EBITDA was the highest in two years," said Varun Krishna, CEO and director of Rocket Companies.
Krishna further emphasized the strength of the company's "Rocket Superstack," which combines its ecosystem, experience, technology, and brand. He expressed confidence that the company will continue to drive success in helping Americans achieve homeownership regardless of market conditions.
Following the earnings release, RKT shares experienced a decline of 10.49% in after-hours trading, reaching $13.91 at the time of publication.