Rocket Companies Misses Adjusted Earnings Estimate

Mortgage company sees loan volumes surge in first quarter.
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Rocket Companies Inc  (RKT) - Get Report missed analyst estimates Wednesday even as home loan volumes rose sharply in the first quarter.

The mortgage loan operator said it made 89 cents per adjusted diluted share on non-GAAP adjusted revenue of $4.04 billion.

Rocket, which came public last August, had been expected to report earnings of 90 cents a share, on sales of $4.2 billion, based on a FactSet survey of 13 analysts.

The stock has risen 13% since the company last reported earnings on Feb. 25.

The company also guided for gain-on-sale margins of 2.65% to 2.95% in the second quarter. That's down from 3.74% in the first quarter of this year.

“This was the sixth consecutive quarter where our team was able to double the company's home loan volume year-over-year,” said Jay Farner, Rocket Companies' Vice Chairman and CEO, in a statement. “Rocket Auto increased the number of vehicles it sold 65% compared to this time last year, Amrock achieved its highest level of closings in company history with an increase of 110% from the first quarter of 2020, and Rocket Homes increased the average monthly visitors on its website by more than 300% versus Q1 last year,” he said in the statement.

Shares of Rocket fell $2.60, or 11.4% in after-hours trading.the stock gained 1.4% in the regular session Wednesday

Rocket was discussed by TheStreet’s Jim Cramer during a recent Lightning Round segment on Mad Money. 

Rocket is one of a number of non-bank service providers called out by Cathie Wood's ARK Investment Management firm recently.