Why Rocket Companies Shares Are Blasting Off After Hours

Rocket Companies Inc RKT shares are rising in extended trading Tuesday after the company narrowly beat analyst estimates on both the top and bottom line.

What Happened: Rocket Companies reported fourth-quarter adjusted revenue of $683 million, which beat consensus estimates of $682.73 million, according to data from Benzinga Pro. The Detroit-based company reported a quarterly loss of 10 cents per share, which beat estimates for a loss of 11 cents per share. 

Rocket Mortgage generated $19 billion in mortgage origination closed loan volume. Gain on sale margin came in at 2.17%, which the company said was largely impacted by higher-than-expected demand for "Inflation Buster," its promotional purchase product.

Rocket accounts reached 25.4 million at the quarter's end. The company ended the quarter with $8.1 billion in total liquidity, which included $3.3 billion in cash.

"Last year marked a period of transformation for Rocket. We right-sized our business to respond to a challenging market; we also made key investments to serve our clients better on every step of their home ownership journey," said Jay Farner, CEO of Rocket Companies.

"With foundational pieces of our client engagement program in place, we are focused on expanding our top of funnel, lifting conversion and lowering our client acquisition cost, with the ultimate goal of growing our purchase market share and extending client lifetime value."

Rocket Companies sees first-quarter revenue in a range of $700 million to $850 million versus estimates of $805.81 million.

A conference call to discuss these results kicked off at 4:30 p.m. ET.

See Also: What's Going On With Virgin Galactic Shares After Hours?

RKT Price Action: Rocket Companies shares have traded in a 52-week range of $5.97-$14.31.

The stock was up 2.86% after hours at $8.09 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Rocket Companies.