Rocket Sinks Following First Post-IPO Earnings Report

Rocket, the parent company of mortgage lender Quicken Loans, posts its first quarterly earnings report following its initial public offering.
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Rocket Cos.  (RKT) - Get Report was sinking in Thursday after the parent company of mortgage lender Quicken Loans posted its first quarterly earnings report following its initial public offering and issued third-quarter guidance.

Earnings in the second quarter were $3.5 billion on revenue of $5 billion. Adjusted earnings before interest, taxes, depreciation and amortization were $3.8 billion.

“While I’m proud of our performance, I am even more encouraged by the significant opportunity that remains in front of us as we continue to execute on our plan of achieving 25% share by 2030,” said Rocket CEO Jay Farner in a statement. “It is clear that our simple, client-focused, digital approach is continuously and fundamentally disrupting the way our industries do business.”

Rocket had forecast the second-quarter numbers soon after its IPO in August.

The company posted closed origination volume in the quarter of $72.3 billion, a record and a 126% increase from a year earlier. Rocket reported net-rate lock volume of $92 billion, up 170% from a year earlier and said it expects third-quarter net rate lock volume of $93 billion to $98 billion.

In addition, Rocket said it expects closed loan volume of between $82 billion and $85 billion in the third quarter.

The initial public offering in August of 100 million shares from Detroit-based Rocket was priced at $18 a share. The issuance was smaller than expected reflecting investors’ hesitance amid cloudy economic forecasts. Rocket originally had expected to raise as much as $3.3 billion via 150 million shares at $20 to $22 each.

The stock was down 9.81% to $28.24 in trading on Thursday.