Rocket Companies leaps 7% on strong Q4 results, solid guidance

Published 27/02/2025, 22:30
Rocket Companies leaps 7% on strong Q4 results, solid guidance

DETROIT - Rocket Companies, Inc. (NYSE:RKT) shares jumped 7% in after-hours trading on Thursday after the fintech platform company reported fourth quarter earnings that beat analyst expectations and provided a solid outlook for the first quarter.

The Detroit-based company, which includes mortgage, real estate and personal finance businesses, reported adjusted earnings per share of $0.04 for Q4 2024, topping the analyst consensus estimate of $0.03. Revenue came in at $1.19 billion, also surpassing Wall Street’s projection of $1.16 billion.

Rocket’s adjusted revenue for the quarter was $1.19 billion, up from $885 million in Q4 2023. The company attributed the strong performance to its AI-driven platform and expanded purchase market share.

"2024 was a foundational year for the next chapter of Rocket. We expanded our purchase market share, drove significant operating leverage, and continued building the future of homeownership," said Varun Krishna, CEO of Rocket Companies.

For the first quarter of 2025, Rocket expects adjusted revenue between $1.175 billion and $1.325 billion. While the midpoint falls slightly below the $1.331 billion analyst consensus, investors appeared encouraged by the outlook given challenging housing market conditions.

The company closed $27.8 billion in loan volume in Q4, up 61% YoY. Its gain on sale margin improved to 2.98% from 2.68% a year earlier.

Rocket’s servicing portfolio grew to $593 billion by the end of 2024, up 17% YoY, generating $1.5 billion in recurring servicing fee income for the full year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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