Rocket Companies Posts $2.44B Q4 Revenue, Surpasses EPS Estimates
Rocket Companies reported $2.44 billion Q4 revenue, up 105.6% year-over-year, exceeding estimates by 7.73%, while EPS of $0.11 topped forecasts by 13.75%. Gain-on-sale of loans, servicing fee income and other income all exceeded analyst projections, with loan servicing income rising 184.1%.
1. Quarterly Results
Rocket Companies reported Q4 revenue of $2.44 billion, a year-over-year increase of 105.6%, and EPS of $0.11, up from $0.04 a year ago. Revenue exceeded the $2.26 billion consensus by 7.73% while EPS topped the $0.10 estimate by 13.75%, marking its third earnings surprise in four quarters.
2. Segment Breakdown
Gain on sale of loans net reached $1.19 billion versus a $1.00 billion estimate, up 67.7% year-over-year. Loan servicing fee income rose 184.1% to $1.10 billion against an $831.6 million forecast, and other income climbed 163.6% to $771 million, while fair value of originated MSRs jumped 71.4% to $727 million.
3. Stock Performance and Outlook
Shares have declined 16.5% over the past month compared to a 0.6% gain in the S&P 500. Consensus estimates for the next quarter call for EPS of $0.17 on $2.43 billion revenue, and full-year EPS of $0.85 on $10.39 billion, suggesting modest near-term expectations.