NYSE$RKT
Rocket Companies Inc · Q3 2020 earnings
Q3 2020 earnings · · Investor relations
Briefing
Rocket Companies reported record closed loan origination volume and a significant increase in GAAP net income, driven by the demand for home loans.
Rocket Companies announced strong Q3 2020 results, with record closed loan origination volume of $89.0 billion, a 122% increase year-over-year. GAAP net income increased by 506% year-over-year to $3.0 billion. The company also announced a $1 billion share repurchase authorization.
- Generated record closed loan origination volume of $89.0 billion, up 122% year-over-year.
- Increased gain on sale margin by 37% year-over-year to 4.52%.
- Grew total revenue, net, by 186% and Adjusted Revenue by 163% compared to Q3 2019.
- Approved a $1 billion share repurchase program.
Headline financials
Revenue & EPS history
Rocket Companies · Revenue · Quarterly
$10.5M
Revenue by segment
Rocket Companies · $4.47B total across 2 segments · Q3 2020
- Direct to Consumer$3.27B+140.6%73.1%
- Partner Network$1.2B+532.6%26.9%
Forward guidance
The company expects strong consumer demand for home loans to continue into the fourth quarter of 2020.
Tailwinds
- Closed loan volume of between $88 billion and $93 billion, an increase of 73% to 83% compared to Q4 2019.
- Net rate lock volume of between $80 billion and $87 billion, an increase of 82% to 98% compared to Q4 2019.
- Gain on sale margins of 3.80% to 4.10%, an improvement of 11% to 20% compared to Q4 2019.
- Continued strong consumer demand for home loans.
- High net client retention and refinance recapture rates.
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 Q3 2020
+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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