Rocket Companies Revenue Up 163% In Record Q3

Rocket Companies Inc RKT reported third-quarter earnings after the close on Tuesday.

Q3 Earnings: The parent company of Rocket Mortgage and Quicken Loans reported adjusted revenue of $4.74 billion for the third quarter, which was up 163% year-over-year and beat the $4.55 billion target from Wall Street analysts.

Adjusted earnings per share came in at $1.21, beating the consensus estimate of $1.07.

Closed origination volume increased 122% year-over-year to a record $89 billion.

The company saw net rate lock volume of $94.7 billion in the third quarter, year-over-year growth of 101%. Direct to consumer revenue grew 120% year-over-year to $3.33 billion. 

“Rocket Companies assisted more clients in the third quarter of 2020 than any quarter in our 35-year history,” said CEO Jay Farner.

Related Link: Why Cramer Says A Biden Win Is Bullish For Rocket Companies

Partner Network Strong: Rocket Companies has signed several partnerships to boost its partner network.

Third-quarter partner fund loan volume increased 127% year-over-year to $29.6 billion. The gain on sale margin for the partner network was 2.7% compared to 0.99% in the prior year’s third quarter.

Adjusted revenue for the partner network grew 533% year-over-year to $1.2 billion.

What’s Next: Rocket Companies is guiding for fourth-quarter closed loan volume to come in a range of $88 billion to $93 billion. 

The net rate lock volume for the fourth quarter is guided in a range of $82 billion to $87 billion.

The company announced a new $1 billion share buyback program.

RKT Price Action: Rocket shares are trading down about 1% in after-hours trading after closing at $21.60.