RKT - Rocket Companies delivers soft Q2 revenue guide; Q1 loss better than feared
2023-05-04 18:01:31 ET
Rocket Companies ( NYSE: RKT ), known for its Rocket Mortgage business, saw its stock edge up 1.2% in Thursday after-hours trading after Q1 loss per share came in lower than Wall Street feared and adjusted revenue surpassed the top and of its guidance, given healthy client demand.
Still, the online loan platform guided for Q2 adjusted revenue of $850M-$1B, trailing the average analyst estimate of $1.04B.
"Our purchase pipeline has been growing in the second quarter, but constrained housing inventory and affordability still present challenges," said CEO Jay Farner.
Q1 adjusted EPS of -$0.06, vs. -$0.09 consensus, narrowed from -$0.10 in the prior quarter and compared with $0.15 a year before.
Total adjusted revenue came in at $882M, topping the $792.9M consensus, surging from $481M in Q4 2022 and falling from $1.93B for the quarter ended March 31, 2022.
Total expenses drifted up to $1.08B from $986M in Q4 2022 and dropped from $1.61B in the year-earlier period.
Adjusted EBITDA loss of $79M compared with a loss of $204M in Q4 2022 and a gain of $450M in Q1 2022.
Closed loan origination volume of $16.9B fell from $19.03B in Q4 2022 and from $54.0B in Q1 2022. Gain on sale margin of 2.29% vs. 3.37% Visible Alpha consensus, 2.17% in the prior quarter and 3.01% in the year-ago quarter. Net rate lock volume of $19.54B rose from $15.01B in Q4 2022 and fell from $49.61B in Q1 2022.
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Rocket Companies delivers soft Q2 revenue guide; Q1 loss better than feared