Rocket Reports Q4 Results: Earnings Beat, Revenue Beat, Sales Up 29%

The Details:

Rocket Companies reported quarterly adjusted earnings of zero cents per share which beat the analyst consensus estimate of losses of 4 cents by 102.5% and is a 101% increase over adjusted losses of 10 cents per share from the same period last year.

The company reported quarterly adjusted sales of $885 million, beating the analyst consensus estimate of $769.00 million by 15.08% and representing a 29.58% increase over adjusted sales of $683 million the prior year’s quarter.

“I’m proud of our team members for consistent execution amid one of the most challenging years for mortgage originations in three decades. We demonstrated accelerating year-over-year revenue growth in the quarter, and positive adjusted EBITDA for the third quarter in a row. We once again made strides in market share, as our purchase and refinance share grew by double-digits in 2023,” said Varun Krishna, CEO of Rocket Companies.

“We enter 2024 with momentum and Rocket is well-positioned to fulfill its strategy of AI-fueled home ownership. AI is being deployed across the organization to deliver industry-best client experiences, with the aim to achieve scaled growth in market share, revenue, and profitability,” added Krishna.

Rocket highlighted automation and AI as helping to deliver higher accuracy and operational efficiency at scale in mortgage underwriting. In December, nearly two-thirds of its income verifications were automated without an underwriter needing to intervene, a 5-fold improvement compared to 15 months prior.

Outlook: 

Rocket sees first-quarter adjusted revenue of between $925 million and $1.075 billion.

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RKT Price Action: According to Benzinga Pro, Rocket Companies shares are trading up 5.65% after-hours at $11.60 at the time of publication.

Image: Jens Neumann from Pixabay