Rocket Companies Q3 adjusted revenue misses; EPS slightly beats estimates
Overview
U.S. homeownership platform's Q3 adjusted revenue missed analyst expectations, adjusted EPS beat consensus
Company gained market share in purchase and refinance, achieving highest profitability margin in five years
Q3 net income rose to $709 mln from a loss a year ago
Outlook
Rocket Companies expects Q4 adjusted revenue between $2.1 bln and $2.3 bln
Result Drivers
MARKET SHARE GAINS - Co said it gained market share in both purchase and refinance despite rising mortgage rates
TECHNOLOGY INVESTMENTS - Co attributed profitability margin improvement to investments in technology and connecting real estate and mortgage operations
AI PLATFORM EXPANSION - Co said AI expanded reach, lifted conversion and unlocked capacity across platform, including credit pulls and digital applications
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $3.28 bln | ||
Q3 Adjusted Revenue | Miss | $2.57 bln | $2.64 bln (12 Analysts) |
Q3 Adjusted EPS | Beat | $0.15 | $0.14 (14 Analysts) |
Q3 Adjusted Net Income | $419 mln | ||
Q3 Net Income | $709 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Rocket Companies Inc is $16.00, about 38.3% above its October 28 closing price of $11.57
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
Oct 29 - D.R. Horton Q4 revenue beats estimates despite weak housing demand
Oct 28 - Meritage Homes Q3 adjusted EPS falls more than expected as higher mortgage rates hurt orders
Oct 27 - US single-family home prices rise further in August, FHFA says
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)