NYSE$RKT

Rocket Companies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Rocket Companies reported a net revenue of $1.4 billion and net income of $60 million for Q2 2022. The company focused on investing in its business and transforming its Rocket platform.

Rocket Companies reported Q2 2022 results, which included a net revenue of $1.4 billion and a net income of $60 million. The company is actively investing in its business and transforming the Rocket services and engagement platforms. Expenses were reduced by approximately $300 million during the quarter.

  • Generated total revenue, net of $1.4 billion and delivered net income of $60 million, or 2 cents per diluted share.
  • Rocket Mortgage generated $34.5 billion in mortgage origination closed loan volume with a gain on sale margin of 2.92%.
  • Exceeded target expense reduction by $100 million, reducing expenses $300 million quarter-over-quarter.
  • Grew servicing book unpaid principal balance to $538 billion at June 30, 2022, up 6% from June 30, 2021.

Headline financials

Total Revenue

$36.5M

Previous: $22.3M+63.9%
EPS (adj)

-$0.03

Previous: $0.46-106.5%
Closed Loan Volume

$34.5B

Previous: $83.8B-58.8%
Gain on Sale Margin

2.9%

Previous: 2.8%+5.0%
Capital Expenditures

-$62.9M

Previous: -$67.7M+7.0%
Free Cash Flow

-$59.5M

Previous: -$6.55M-809.4%
Net Income

$3.42M

Previous: $61.1M-94.4%
Operating Income

$96.9M

Previous: $936M-89.7%
Gross Profit

$583M

Previous: $1.53B-61.8%
Cash & Equivalents

$915M

Previous: $1.98B-53.7%
Total Assets

$25.1B

Previous: $35.6B-29.6%
Stock-Based Comp

$56.4M

Previous: $40.9M+37.9%

Revenue & EPS history

Rocket Companies · Revenue · Quarterly

$36.5M

Q2 2022+63.9%vs Q2 2021
Beat estimate in 2 of 12 quarters(17%)
ActualEstimate

Revenue by segment

Rocket Companies · $1.28B total across 2 segments · Q2 2022

  • Direct to Consumer
    $1.11B-50.2%
  • Partner Network
    $177M-44.5%

Forward guidance

Rocket Companies expects the following ranges in Q3 2022:

Tailwinds

  • Closed loan volume of between $23 billion and $28 billion.
  • Net rate lock volume of between $23 billion and $30 billion.
  • Gain on sale margins of 2.50% to 2.80%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.6%

Avg return

Earnings day

+5.6%

Avg return

5 days after

+3.2%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+14.8%

Q3 2023

Best reaction

-15.5%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.4%-14.9%
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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