Rocket Companies, Inc. (NYSE: RKT) released its FY22 Q1 earnings on Tuesday after the market closed.
Financial Highlights
- Generated total revenue, net of $2.7 billion and Adjusted Revenue of $1.9 billion, which represents a 41% and a 52% decline compared to Q1’21 levels, respectively.
- Rocket Mortgage generated $54.0 billion in mortgage origination closed loan volume. Gain on sale margin was 3.01% and included one-time benefits due to the rapid move in bond markets, which increased gain on sale margin by 15 basis points.
- Generated net income of $1.0 billion and Adjusted Net Income of $293 million. Our net income margin was 39% and our Adjusted Net Income margin was 15%.
- Achieved Adjusted EBITDA of $450 million and Adjusted EBITDA margin was 23%.
- Grew servicing book unpaid principal balance to $546 billion at March 31, 2022, roughly flat from December 31, 2021 and up 17% from March 31, 2021. As of March 31, 2022, our servicing portfolio includes 2.6 million clients and generates over $1.4 billion of recurring servicing fee income on an annualized basis.
Reported vs. Estimated
EPS : diluted $0.40 vs $0.19 expected
Revenue : $2.671 Billion vs $2.32 Billion expected
Second Quarter 2022 Outlook
- Closed loan volume of between $35 billion and $40 billion.
- Net rate lock volume of between $31 billion and $38 billion.
- Gain on sale margins of 2.60% to 2.90%
Earnings History
Rocket Companies last reported earnings on February 24th, 2022. The company reported $0.30 earnings per share for the quarter, falling $0.06 short of analysts’ consensus estimates of $0.36. The company’s revenue for the quarter was $2.59 billion, compared to analysts’ expectations of $2.62 billion. Its revenue for the quarter was down 44.6% year on year. Rocket Companies earned $2.33 per share in the previous year ($2.33 diluted earnings per share) and has a price-to-earnings ratio of 3.6.
Annual Forecast
Rocket Companies’ earnings are expected to increase by 24.49% in the coming year, from $0.98 to $1.22 per share.
Company Profile
Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Amrock, Core Digital Media, Rock Connections, Lendesk, and Edison Financial are among the personal finance and consumer service brands owned by Rocket Companies Inc and is headquartered in DETROIT.
