Compared to Estimates, Rocket Companies (RKT) Q2 Earnings: A Look at Key Metrics

For the quarter ended June 2024, Rocket Companies (RKT) reported revenue of $1.3 billion, up 5.2% over the same period last year. EPS came in at $0.06, compared to -$0.02 in the year-ago quarter.

The reported revenue represents a surprise of +5.96% over the Zacks Consensus Estimate of $1.23 billion. With the consensus EPS estimate being $0.05, the EPS surprise was +20.00%.

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.

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- Gain on sale of loans, net

  : $758.56 million compared to the $731.73 million average estimate based on five analysts. The reported number represents a change of +27.6% year over year.

• Revenue- Loan servicing income- Servicing fee income

  : $354.68 million versus $359.16 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3.2% change.

• Revenue- Interest income, net

  : $31.12 million compared to the $38.25 million average estimate based on five analysts. The reported number represents a change of -15.2% year over year.

• Revenue- Loan servicing income- Change in fair value of MSRs

  : -$112.94 million versus the five-analyst average estimate of -$211.59 million. The reported number represents a year-over-year change of -366.5%.

• Revenue- Other income

  : $269.31 million compared to the $264.67 million average estimate based on five analysts. The reported number represents a change of +22.9% year over year.

• Revenue- Loan servicing income, net

  : $241.74 million versus $149.21 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -37.4% change.

• Revenue- Gain on sale of loans- Fair value of originated MSRs

  : $345.55 million compared to the $310.76 million average estimate based on four analysts. The reported number represents a change of +9.8% year over year.

• Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net

  : $413.01 million compared to the $428.30 million average estimate based on four analysts. The reported number represents a change of +47.7% year over year.

• Revenue- Interest income- Interest income

  : $112.42 million compared to the $93.28 million average estimate based on three analysts. The reported number represents a change of +39.2% year over year.

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

Shares of Rocket Companies have returned +16.9% 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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