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Rocket Companies (RKT) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended March 2024, Rocket Companies (RKT - Free Report) reported revenue of $1.38 billion, up 107.7% over the same period last year. EPS came in at $0.04, compared to -$0.06 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.02 billion, representing a surprise of +35.70%. The company delivered an EPS surprise of +300.00%, with the consensus EPS estimate being $0.01.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $345.75 million compared to the $353.59 million average estimate based on five analysts. The reported number represents a change of -5.6% year over year.
Revenue- Loan servicing income- Change in fair value of MSRs: $56.51 million versus the five-analyst average estimate of -$175.39 million. The reported number represents a year-over-year change of -114.2%.
Revenue- Other income: $244.70 million compared to the $234.38 million average estimate based on five analysts. The reported number represents a change of +28.3% year over year.
Revenue- Gain on sale of loans, net: $699.23 million versus $594.33 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +48.9% change.
Revenue- Interest income, net: $37.54 million versus $35.05 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -0.4% change.
Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $476.43 million versus the four-analyst average estimate of $293.19 million. The reported number represents a year-over-year change of +79.8%.
Revenue- Gain on sale of loans- Fair value of originated MSRs: $222.80 million compared to the $313.99 million average estimate based on four analysts. The reported number represents a change of +8.9% year over year.
Revenue- Loan servicing income, net: $402.25 million versus the four-analyst average estimate of $172.45 million. The reported number represents a year-over-year change of -1361.2%.
Revenue- Interest income- Interest income: $88.98 million versus $74.27 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +33.3% change.
Shares of Rocket Companies have returned -6.7% over the past month versus the Zacks S&P 500 composite's -4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Rocket Companies (RKT) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended March 2024, Rocket Companies (RKT - Free Report) reported revenue of $1.38 billion, up 107.7% over the same period last year. EPS came in at $0.04, compared to -$0.06 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.02 billion, representing a surprise of +35.70%. The company delivered an EPS surprise of +300.00%, with the consensus EPS estimate being $0.01.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $345.75 million compared to the $353.59 million average estimate based on five analysts. The reported number represents a change of -5.6% year over year.
- Revenue- Loan servicing income- Change in fair value of MSRs: $56.51 million versus the five-analyst average estimate of -$175.39 million. The reported number represents a year-over-year change of -114.2%.
- Revenue- Other income: $244.70 million compared to the $234.38 million average estimate based on five analysts. The reported number represents a change of +28.3% year over year.
- Revenue- Gain on sale of loans, net: $699.23 million versus $594.33 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +48.9% change.
- Revenue- Interest income, net: $37.54 million versus $35.05 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -0.4% change.
- Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $476.43 million versus the four-analyst average estimate of $293.19 million. The reported number represents a year-over-year change of +79.8%.
- Revenue- Gain on sale of loans- Fair value of originated MSRs: $222.80 million compared to the $313.99 million average estimate based on four analysts. The reported number represents a change of +8.9% year over year.
- Revenue- Loan servicing income, net: $402.25 million versus the four-analyst average estimate of $172.45 million. The reported number represents a year-over-year change of -1361.2%.
- Revenue- Interest income- Interest income: $88.98 million versus $74.27 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +33.3% change.
View all Key Company Metrics for Rocket Companies here>>>Shares of Rocket Companies have returned -6.7% over the past month versus the Zacks S&P 500 composite's -4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.