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