Quicken Parent Rocket Shares Jump After Preliminary Report

Shares of Rocket Cos., Quicken Loans' parent, jumped after the mortgage company issued preliminary results.
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Rocket Cos.  (RKT) - Get Report shares jumped on Friday after the Quicken Loans parent offered a second-quarter preliminary report.

Shares of the Detroit mortgage-services company, which went public at $18 a share last week, at last check were up 6.7% at $19.99.

Rocket Cos. said it expected net income of $3.5 billion, compared with a loss of $54 million in the year-earlier period, as a result of revenue growth. 

The company said it expected revenue to come in at $5.04 billion, five times the $938 million of a year earlier.

The preliminary report was issued as part of a financial disclosure requirement for bondholders, the company said in a statement. 

"The timing of this disclosure was unique to this quarter given the timing of the company's initial public offering, and it does not intend to report preliminary results in future quarters," Rocket said.

Closed loan origination volume totaled $72.3 billion, more than double the year-earlier figure. Net rate lock volume was $92 billion, also more than double the Q2 2019 figure.

Gain on sale margin of 5.19% increased from 3.22% a year period ago as a result of generally favorable market conditions, which led to increased demand for mortgages and capacity constraints in the industry.

"The long-term investments we have made in our people and our flexible, scalable technology platform have allowed us to increase our capacity, take advantage of favorable market conditions, and in turn position us to capture additional market share," Chief Executive Jay Farner said in a statement.

Quicken is the largest retail mortgage originator in the U.S., underwriting about $145 billion in 2019, according to Bloomberg.

Rocket Cos. is scheduled to report complete second-quarter earnings on Sept. 2.