Rocket Companies Stock Rises After Q2 Beat: The Details

Rocket Companies, Inc. RKT shares are trading higher in Thursday’s after-hours session after posting its second-quarter earnings. Here’s a summary of what’s happening.

What To Know: Rocket Companies reported quarterly losses of two cents per share which beat the analyst consensus estimate of losses of five cents per share, a 33.33% increase over losses of three cents per share from last year. 

It reported quarterly sales of $1.24 billion, which beat the analyst consensus estimate of $983.18 million, an 11.21% decrease over sales of $1.39 billion in the same period last year.

Total liquidity was approximately $8.6 billion, as of June 30, 2023, including $0.9 billion of cash-on-hand, $2.9 billion of corporate cash used to self-fund loan originations, $3.1 billion of undrawn lines of credit, and $1.7 billion of undrawn MSR lines.

“Rocket’s performance in the second quarter demonstrates the strength of our business and our commitment to delivering superior client service through innovation. In the second quarter, against the backdrop of housing affordability and inventory challenges, we reported adjusted revenue that exceeded the high end of our guidance range, and profitability on a net income and Adjusted EBITDA basis. These results are reflective of our continued focus on operating a growing and efficient business,” said Bill Emerson, Interim CEO of Rocket Companies. 

“On behalf of the board, I am pleased to announce the appointment of Varun Krishna as Rocket Companies’ next Chief Executive Officer. Varun brings a wealth of fintech leadership experience, most recently as Executive Vice President & General Manager of Intuit’s Consumer Group, that will be instrumental in driving Rocket’s future success.”

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RKT Price Action: Shares of RKT were up 1.88% at $10.30 in after-hours trading at the time of publication, according to Benzinga Pro. 

Image by Nattanan Kanchanaprat from Pixabay