Compared to Estimates, Rocket Companies (RKT) Q1 Earnings: A Look at Key Metrics

Rocket Companies (RKT) reported $666.07 million in revenue for the quarter ended March 2023, representing a year-over-year decline of 75.1%. EPS of -$0.06 for the same period compares to $0.15 a year ago.

The reported revenue represents a surprise of -11.73% over the Zacks Consensus Estimate of $754.56 million. With the consensus EPS estimate being -$0.10, the EPS surprise was +40.00%.

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.

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- Change in fair value of MSRs: -$398.28 million compared to the -$246.80 million average estimate based on five analysts. The reported number represents a change of -187.7% year over year.

• Revenue- Interest income, net: $37.68 million versus $46.74 million estimated by five analysts on average.

• Revenue- Gain on sale of loans, net: $469.56 million versus $428.03 million estimated by five analysts on average.

• Revenue- Loan servicing loss- Servicing fee income: $366.39 million versus $365.03 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.1% change.

• Revenue- Other income: $190.72 million versus the four-analyst average estimate of $163.76 million. The reported number represents a year-over-year change of -39.9%.

• Revenue- Loan servicing loss, net: -$31.89 million versus $105.12 million estimated by four analysts on average.

• Revenue- Gain on sale of loans- Fair value of originated MSRs: $204.56 million compared to the $283.98 million average estimate based on three analysts. The reported number represents a change of -74.3% year over year.

• Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $265 million compared to the $161.05 million average estimate based on three analysts. The reported number represents a change of -61.4% year over year.

View all Key Company Metrics for Rocket Companies here>>>

Shares of Rocket Companies have returned -7.9% over the past month versus the Zacks S&P 500 composite's -0.7% 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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