Rocket Companies Beats Earnings and Revenue Estimates Despite Losses
May 5, 2023
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The company reported a Non-GAAP EPS of -$0.06 which beat the expected figure of -$0.09 by $0.03, while the revenue of $882M was higher than the estimated value of $792.85M by $89.15M. The company is renowned for its innovative use of technology and its customer-centric approach to service. Rocket Companies ($NYSE:RKT) has become a go-to source for many customers looking for a convenient and efficient means of obtaining financial services. The stock is currently trading at over four times its pre-pandemic price and is now one of the most widely held stocks on the market. This performance has propelled the company’s stock to record highs and demonstrated its strength amid difficult economic conditions.
Price History
On Thursday, ROCKET COMPANIES posted a surprise beat in earnings and revenue estimates despite losses, resulting in the stock opening at $8.5 and closing at $8.7, up 0.7% from the previous closing price of 8.6. Despite this, the stock managed to remain relatively stable throughout the day’s trading session, closing slightly above its opening price. This was an encouraging sign for investors, as it indicated that the markets have confidence in the company’s ability to overcome these losses. However, with more losses likely in the short-term, investors should continue to monitor ROCKET COMPANIES closely to ensure that it can successfully navigate through this difficult period. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rocket Companies. More…
| Total Revenues | Net Income | Net Margin |
| – | 46.44 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rocket Companies. More…
| Operations | Investing | Financing |
| 10.82k | 578.74 | -12.82k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rocket Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.08k | 11.61k | – |
Key Ratios Snapshot
Some of the financial key ratios for Rocket Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
At GoodWhale, we conducted an analysis of ROCKET COMPANIES‘s fundamentals and found that it has a low health score of 0/10 with regard to its cashflows and debt, making it less likely to sustain future operations in times of crisis. Based on this, we classified ROCKET COMPANIES as a ‘cow’, meaning it has the track record of paying out consistent and sustainable dividends. For investors looking for a solid dividend-paying stock, ROCKET COMPANIES could be an attractive option. It is strong in terms of profitability, medium in terms of growth, asset, and dividend, and weak in terms of debt. Investors looking for a steady income stream may be drawn to ROCKET COMPANIES’s consistent dividends, making it an attractive option for those who prefer income investing. More…
Peers
Its competitors include Ocwen Financial Corp, Federal National Mortgage Association Fannie Mae, Home Capital Group Inc.
– Ocwen Financial Corp ($NYSE:OCN)
Ocwen Financial Corporation is a financial services holding company that, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, Real Estate Owned (REO), Investment Management and Corporate.
– Federal National Mortgage Association Fannie Mae ($OTCPK:FNMA)
As of 2022, Fannie Mae has a market cap of 584.66M. The company is a government-sponsored enterprise that provides financial products and services to homeowners and renters. Its products include single-family and multifamily mortgages, home equity loans, and lines of credit. Fannie Mae was founded in 1938 and is headquartered in Washington, D.C.
– Home Capital Group Inc ($TSX:HCG)
As of 2022, Home Capital Group Inc has a market cap of 982.97M. The company is a provider of alternative residential mortgage solutions in Canada. Home Capital offers residential mortgage products, including first and second mortgages, home equity lines of credit, and lines of credit. The company was founded in 1954 and is headquartered in Toronto, Canada.
Summary
The results exceeded expectations, with an EPS of -$0.06, beating forecasts by $0.03. Revenue of $882 million also beat expectations of $793 million by $89 million. Despite the pandemic and associated economic downturn, investors are looking to Rocket Companies favorably as it continues to report strong financial results. Moving forward, analysts will be closely monitoring whether the company can sustain its impressive performance in light of the uncertain economic environment.
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