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Rocket Companies Q3 adjusted revenue misses; EPS slightly beats estimates

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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