Analyst: Rocket Ran a 'Little Too Hot a Little Too Fast'

Katherine Ross

Rocket 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 a net-rate lock volume of $92 billion, up 170% from a year earlier, and said it expects a third-quarter net rate lock volume of $93 billion to $98 billion.

Jeff Marks, senior portfolio analyst with Jim Cramer's Action Alerts PLUS, weighs in on what investors need to watch in a company's first earnings report. 

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

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Comments (5)
No. 1-5
kperkins2
kperkins2

Take off in 5..4..3..2..🚀

jeehoyun
jeehoyun

crazy growth

AlexM5
AlexM5

Rocket definitely fits as their name hhaha

JavierFrausto
JavierFrausto

126% & 170% increase from last year 🤯

Emmanwo8
Emmanwo8

I'm intrigued to see how Rocket will grow in the future