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Here's What Key Metrics Tell Us About Rocket Companies (RKT) Q4 Earnings
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Rocket Companies (RKT - Free Report) reported $693.81 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 44.3%. EPS of $0.00 for the same period compares to -$0.10 a year ago.
The reported revenue represents a surprise of -5.64% over the Zacks Consensus Estimate of $735.27 million. With the consensus EPS estimate being -$0.05, the EPS surprise was +100.00%.
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- Loan servicing income- Servicing fee income: $347.74 million versus $342.99 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.2% change.
Revenue- Loan servicing income- Change in fair value of MSRs: -$357.85 million versus the five-analyst average estimate of -$242.15 million. The reported number represents a year-over-year change of -12.1%.
Revenue- Other income: $232.60 million versus the five-analyst average estimate of $184.27 million. The reported number represents a year-over-year change of +24.2%.
Revenue- Gain on sale of loans, net: $430.14 million compared to the $402.18 million average estimate based on five analysts. The reported number represents a change of +53.2% year over year.
Revenue- Interest income, net: $41.17 million versus $35.76 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -16.5% change.
Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $187.83 million versus $168.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2605.1% change.
Revenue- Gain on sale of loans- Fair value of originated MSRs: $242.31 million versus $234.45 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -16% change.
Revenue- Loan servicing income, net: -$10.10 million compared to the $86.33 million average estimate based on four analysts. The reported number represents a change of -72.3% year over year.
Revenue- Interest income- Interest income: $86.08 million compared to the $80.34 million average estimate based on three analysts. The reported number represents a change of +1.2% year over year.
Shares of Rocket Companies have returned -8.3% over the past month versus the Zacks S&P 500 composite's +3.1% 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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Here's What Key Metrics Tell Us About Rocket Companies (RKT) Q4 Earnings
Rocket Companies (RKT - Free Report) reported $693.81 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 44.3%. EPS of $0.00 for the same period compares to -$0.10 a year ago.
The reported revenue represents a surprise of -5.64% over the Zacks Consensus Estimate of $735.27 million. With the consensus EPS estimate being -$0.05, the EPS surprise was +100.00%.
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- Loan servicing income- Servicing fee income: $347.74 million versus $342.99 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.2% change.
- Revenue- Loan servicing income- Change in fair value of MSRs: -$357.85 million versus the five-analyst average estimate of -$242.15 million. The reported number represents a year-over-year change of -12.1%.
- Revenue- Other income: $232.60 million versus the five-analyst average estimate of $184.27 million. The reported number represents a year-over-year change of +24.2%.
- Revenue- Gain on sale of loans, net: $430.14 million compared to the $402.18 million average estimate based on five analysts. The reported number represents a change of +53.2% year over year.
- Revenue- Interest income, net: $41.17 million versus $35.76 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -16.5% change.
- Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $187.83 million versus $168.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2605.1% change.
- Revenue- Gain on sale of loans- Fair value of originated MSRs: $242.31 million versus $234.45 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -16% change.
- Revenue- Loan servicing income, net: -$10.10 million compared to the $86.33 million average estimate based on four analysts. The reported number represents a change of -72.3% year over year.
- Revenue- Interest income- Interest income: $86.08 million compared to the $80.34 million average estimate based on three analysts. The reported number represents a change of +1.2% year over year.
View all Key Company Metrics for Rocket Companies here>>>Shares of Rocket Companies have returned -8.3% over the past month versus the Zacks S&P 500 composite's +3.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.