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Rocket Companies (RKT) Reports Q4 Earnings: What Key Metrics Have to Say
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For the quarter ended December 2024, Rocket Companies (RKT - Free Report) reported revenue of $1.19 billion, up 71.1% over the same period last year. EPS came in at $0.04, compared to $0.00 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.16 billion, representing a surprise of +2.62%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being $0.03.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $387.95 million compared to the $378.79 million average estimate based on five analysts. The reported number represents a change of +11.6% year over year.
Revenue- Loan servicing income- Change in fair value of MSRs: $356.06 million compared to the -$191.80 million average estimate based on five analysts. The reported number represents a change of -199.5% year over year.
Revenue- Other income: $292.49 million versus $256.69 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +25.8% change.
Revenue- Gain on sale of loans, net: $710.74 million compared to the $706.49 million average estimate based on five analysts. The reported number represents a change of +65.2% year over year.
Revenue- Loan servicing income, net: $744.02 million compared to the $187.19 million average estimate based on five analysts. The reported number represents a change of -7465.1% year over year.
Revenue- Interest income, net: $22.16 million versus $21.76 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -46.2% change.
Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $286.57 million compared to the $397.45 million average estimate based on four analysts. The reported number represents a change of +52.6% year over year.
Revenue- Gain on sale of loans- Fair value of originated MSRs: $424.17 million compared to the $306.47 million average estimate based on four analysts. The reported number represents a change of +75.1% year over year.
Revenue- Interest income- Interest income: $103.20 million versus $103.60 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +19.9% change.
Shares of Rocket Companies have returned +5.5% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
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Rocket Companies (RKT) Reports Q4 Earnings: What Key Metrics Have to Say
For the quarter ended December 2024, Rocket Companies (RKT - Free Report) reported revenue of $1.19 billion, up 71.1% over the same period last year. EPS came in at $0.04, compared to $0.00 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.16 billion, representing a surprise of +2.62%. The company delivered an EPS surprise of +33.33%, with the consensus EPS estimate being $0.03.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $387.95 million compared to the $378.79 million average estimate based on five analysts. The reported number represents a change of +11.6% year over year.
- Revenue- Loan servicing income- Change in fair value of MSRs: $356.06 million compared to the -$191.80 million average estimate based on five analysts. The reported number represents a change of -199.5% year over year.
- Revenue- Other income: $292.49 million versus $256.69 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +25.8% change.
- Revenue- Gain on sale of loans, net: $710.74 million compared to the $706.49 million average estimate based on five analysts. The reported number represents a change of +65.2% year over year.
- Revenue- Loan servicing income, net: $744.02 million compared to the $187.19 million average estimate based on five analysts. The reported number represents a change of -7465.1% year over year.
- Revenue- Interest income, net: $22.16 million versus $21.76 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -46.2% change.
- Revenue- Gain on sale of loans- Gain on sale of loans excluding fair value of MSRs, net: $286.57 million compared to the $397.45 million average estimate based on four analysts. The reported number represents a change of +52.6% year over year.
- Revenue- Gain on sale of loans- Fair value of originated MSRs: $424.17 million compared to the $306.47 million average estimate based on four analysts. The reported number represents a change of +75.1% year over year.
- Revenue- Interest income- Interest income: $103.20 million versus $103.60 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +19.9% change.
View all Key Company Metrics for Rocket Companies here>>>Shares of Rocket Companies have returned +5.5% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.