NYSE$RKT
Rocket Companies Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Rocket Companies reported a record closed origination volume and a substantial net income.
Rocket Companies announced strong second quarter results with record closed loan origination volume of $72.3 billion and net income of $3.5 billion. The company benefited from a scalable mortgage origination platform and favorable market conditions.
- Generated record closed loan origination volume of $72.3 billion, a 126% year-over-year improvement.
- Increased gain on sale margin due to favorable market conditions and capacity constraints.
- Grew total revenue, net, by 268% compared to the first quarter of 2020.
- Announced the “Changing the Course” initiative to provide Detroit residents with internet, technology, and digital literacy training.
Headline financials
Revenue & EPS history
Rocket Companies · Revenue · Quarterly
$24.3M
Revenue by segment
Rocket Companies · $4.72B total across 2 segments · Q2 2020
- Direct to Consumer$3.94B+420.3%83.4%
- Partner Network$783M+575.0%16.6%
Forward guidance
The company provided outlook for the third quarter of 2020.
Tailwinds
- Net rate lock volume of between $93 billion and $98 billion, representing an increase of 98% to 108% compared to Q3 2019.
- Closed loan volume of between $82 billion and $85 billion, representing an increase of 105% to 112% compared to Q3 2019.
- Gain on sale margins of 4.05% to 4.30%, an improvement of 23% to 31% compared to Q3 2019.
- Strong consumer demand for home loans is expected to continue into the third quarter of 2020.
- Company remains in a strong liquidity position following the IPO.
Headwinds
- Approximately 4.7% of the total servicing portfolio were on a forbearance plan related to COVID-19 as of August 31, 2020.
- Expenses increased by 24%, primarily driven by higher variable compensation.
- Change in fair value of MSRs due to valuation assumptions can impact revenue.
- Non-cash stock compensation expense affects net income.
- Adjusted Revenue, Adjusted Net Income and Adjusted EBITDA are non-GAAP measures and may not be comparable to those of other companies.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports
+0.6%
Avg return
Earnings day
+5.6%
Avg return
5 days after
+2.2%
Avg return
30 days after
50%
12 / 24 earnings
Positive
+14.8%
Q3 2023
Best reaction
-15.5%
Q1 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -5.4% | -14.9% | -20.1% | |
| Q4 2025 | +2.4% | -6.4% | -23.1% | |
| Q3 2025 | +6.0% | +2.3% | +25.3% | |
| Q2 2025 | +0.0% | +11.4% | +21.8% | |
| Q1 2025 | -4.7% | +8.2% | +9.6% | |
| Q4 2024 | +9.1% | +16.1% | +1.6% | |
| Q3 2024 | -10.3% | -13.7% | -20.6% | |
| Q2 2024 | +6.5% | +13.2% | +21.4% | |
| Q1 2024 | +7.6% | +13.1% | +12.5% | |
| Q4 2023 | +5.1% | +8.6% | +28.5% | |
| Q3 2023 | +14.8% | +8.5% | +31.2% | |
| Q2 2023 | +8.5% | +10.4% | +2.1% | |
| Q1 2023 | -2.2% | -4.3% | -4.2% | |
| Q4 2022 | +1.9% | +9.6% | +11.5% | |
| Q3 2022 | -4.5% | -0.6% | +27.2% | |
| Q2 2022 | -2.9% | -6.0% | -25.7% | |
| Q1 2022 | -11.9% | -3.5% | -0.6% | |
| Q4 2021 | +10.4% | +20.8% | -6.1% | |
| Q3 2021 | -2.4% | -4.3% | -10.9% | |
| Q2 2021 | +9.4% | +2.0% | -5.7% | |
| Q1 2021 | -15.5% | -21.5% | -12.1% | |
| Q4 2020 | +7.5% | +104.7% | +17.7% | |
| Q3 2020 | -1.8% | +1.9% | -3.0% | |
| Q2 2020 | -13.7% | -20.0% | -25.1% | |
| Q1 2020 | — | — | — | |
| Q4 2019 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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