Rocket Companies Shares Drop Over 8% After Zillow’s Q4 Revenue Beats, EPS Misses
Rocket Companies shares plunged 8.4% after Zillow reported Q4 revenue of $654 million, up 18% year-over-year, while EPS fell one cent short at $0.39. Zillow guided Q1 revenue of $700-710 million, and Rocket’s Feb. 26 earnings preview forecasts $0.08 EPS on $2.28 billion revenue with a premium 289x P/E.
1. Zillow Q4 Results
Zillow reported fourth-quarter revenue of $654 million, an 18% increase year-over-year, but adjusted EPS of $0.39 fell one cent below consensus. The company issued first-quarter revenue guidance of $700–710 million, beating estimates despite the slight EPS miss.
2. Rocket Shares Reaction
Rocket Companies shares declined 8.4% on Wednesday as traders treated Zillow’s mixed update as a barometer for housing activity. Weaker sentiment around listings and buyer traffic raised concerns over mortgage origination volumes and gain-on-sale margins.
3. Rocket Earnings Outlook
Rocket Companies is set to release Q4 results on Feb. 26, with analysts projecting $0.08 EPS versus $0.04 a year ago and $2.28 billion in revenue, up from $1.19 billion. The stock trades at a 289x P/E multiple, with an average price target of $19.47 from Hold-rated analysts.