RKT - Rocket Mortgage parent Q4 loss partly offset by cost-cutting efforts
Rocket Companies ( NYSE: RKT ) stock gained 3.1% in Tuesday after-hours trading after the online loan platform reported a Q4 loss that was smaller than Wall Street's consensus as the online lender cut expenses by more than it expected. The midpoint of its Q1 revenue guidance range, though, came in below the average analyst estimate.
The company known for its Rocket Mortgage unit expects Q1 adjusted revenue of $700M-$850M (midpoint $775M) vs. $802.3M consensus. As the Federal Reserve continues to boost its key interest rate in an effort to tamp down inflation, demand for loans falters.
Q4 adjusted EPS of -$0.10 beat the average analyst estimate of -$0.12, widened slightly from -$0.08 in Q3 and compared with $0.32 in Q4 2021.
During the quarter, Rocket ( RKT ) reduced expenses by $202M from Q3, more than the company's original expectations of $50M-$100M.
Revenue of $481M, vs. $732.3M consensus, sank from $1.30B in the prior quarter and $2.59B in the year-ago period.
Q4 adjusted EBITDA of -$204M vs. -$160M in the Q3 and $901M in Q4 2021.
Closed loan origination volume of $19.03B, (vs. Visible Alpha consensus of $19.16B) fell from $25.58B in Q3 and from $75.86B in Q4 2021. Gain on sale margin of 2.17% vs. 2.43% Visible Alpha consensus, 2.69% in the prior quarter and 2.8i0% in the year-ago quarter. Net rate lock volume of $15.01B slid from $23.75B in Q3 and from $68.38B in Q4 2021.
Conference call at 4:30 PM ET.
Rocket Companies non-GAAP EPS of -$0.10 beats by $0.02, revenue of $683M misses by $49.26M, guidance below consensus
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Rocket Mortgage parent Q4 loss partly offset by cost-cutting efforts