Rocket Companies (NYSE:RKT) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Rocket Companies beat quarterly expectations, reporting adjusted EPS of $0.15 versus the $0.12 consensus and revenue of $2.82 billion versus $2.76 billion expected. Revenue jumped 167.1% year over year from the same quarter last year.
• The company said its AI and automation investments are improving operations and driving growth, including faster product rollout and better conversion rates. Management also said recent launches added about $1 billion in monthly volume.
• Rocket expects $400 million in annualized Mr. Cooper expense synergies by the end of 2026, one year earlier than planned, with $75 million already captured. For Q2, it guided revenue to $2.7 billion-$2.9 billion, slightly cautious amid higher rates and volatility.

Rocket Companies (NYSE:RKT - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.03, FiscalAI reports. The company had revenue of $2.82 billion for the quarter, compared to the consensus estimate of $2.76 billion. Rocket Companies had a return on equity of 5.14% and a net margin of 2.78%.The firm's quarterly revenue was up 167.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.04 EPS.

Here are the key takeaways from Rocket Companies' conference call:

• Rocket reported a strong Q1 with $2.822 billion adjusted revenue (above guidance), $738 million adjusted EBITDA (26% margin), $0.15 adjusted EPS, and $49 billion net rate lock volume (up 19% QoQ).
• The company says its multi-year investment in AI and automation is producing real operating gains — loan officer prospecting time reduced to zero, agentic pre‑approvals now ~10% of all pre‑approvals with 33% higher conversion, and management says recent launches added another $1 billion in monthly volume and sped feature rollout fivefold.
• Integration progress is ahead of plan — management expects the full $400 million of annualized Mr. Cooper expense synergies to be realized by end of 2026 (one year early), with $75 million of run‑rate savings already captured and another $100 million expected by end‑Q2.
• Management framed Q2 conservatively amid higher rates and geopolitical volatility, guiding adjusted revenue of $2.7–$2.9 billion and noting ~70% of revenue is recurring or less rate‑sensitive, while expecting volumes roughly in line with Q1 despite a tougher market.

Rocket Companies Stock Up 10.9%

RKT traded up $1.54 during trading on Friday, hitting $15.69. 37,241,325 shares of the company's stock traded hands, compared to its average volume of 22,861,564. The company's 50 day simple moving average is $15.16 and its two-hundred day simple moving average is $17.70. The company has a current ratio of 70.90, a quick ratio of 70.90 and a debt-to-equity ratio of 1.07. Rocket Companies has a 12-month low of $11.08 and a 12-month high of $24.36. The stock has a market capitalization of $44.24 billion, a price-to-earnings ratio of 313.76 and a beta of 2.23.

Key Stories Impacting Rocket Companies

Here are the key news stories impacting Rocket Companies this week:

• Positive Sentiment: Rocket Companies posted better-than-expected Q1 results, with earnings of $0.15 per share topping estimates and revenue of $2.82 billion beating forecasts, helped by a 167% year-over-year jump in revenue. Rocket Companies (RKT) Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management highlighted accelerating momentum from AI and acquisitions, with EBITDA more than tripling, reinforcing the idea that the company’s turnaround is taking hold. Rocket Companies Beats Estimates as AI and Acquisitions Accelerate the Turnaround
• Positive Sentiment: Shares also got a sentiment boost from unusually heavy call-option buying, suggesting traders are positioning for more upside after the earnings report.
• Neutral Sentiment: Rocket’s Q2 revenue guidance of $2.7 billion to $2.9 billion was below consensus, which could limit gains if investors focus on near-term execution rather than the quarterly beat. Rocket Companies trades higher as Q1 earnings top estimates, Q2 guidance below consensus
• Neutral Sentiment: Redfin’s report that pending home sales hit the highest level in nearly four years is a supportive backdrop for Rocket’s mortgage business, but it is indirect and not a company-specific catalyst. Redfin Reports Pending Home Sales Hit Highest Level in Nearly 4 Years

Hedge Funds Weigh In On Rocket Companies

Several hedge funds and other institutional investors have recently modified their holdings of the company. ValueAct Holdings L.P. lifted its holdings in shares of Rocket Companies by 55.1% during the 4th quarter. ValueAct Holdings L.P. now owns 39,380,652 shares of the company's stock valued at $762,409,000 after buying an additional 13,985,025 shares during the period. Morgan Stanley lifted its holdings in shares of Rocket Companies by 461.2% during the 4th quarter. Morgan Stanley now owns 27,009,279 shares of the company's stock valued at $522,900,000 after buying an additional 22,196,782 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Rocket Companies by 11,636.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 26,189,869 shares of the company's stock valued at $507,037,000 after buying an additional 25,966,725 shares during the period. State Street Corp lifted its holdings in shares of Rocket Companies by 323.9% during the 4th quarter. State Street Corp now owns 20,688,336 shares of the company's stock valued at $400,526,000 after buying an additional 15,807,776 shares during the period. Finally, Durable Capital Partners LP bought a new position in shares of Rocket Companies during the 3rd quarter valued at $213,010,000. 4.59% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts recently weighed in on RKT shares. Keefe, Bruyette & Woods upgraded Rocket Companies from a "market perform" rating to an "outperform" rating and upped their price target for the stock from $20.00 to $22.00 in a research note on Monday, March 16th. JPMorgan Chase & Co. cut their price target on Rocket Companies from $24.00 to $16.50 and set a "neutral" rating on the stock in a research note on Thursday, April 9th. Barclays upgraded Rocket Companies from an "equal weight" rating to an "overweight" rating and cut their target price for the company from $22.00 to $19.00 in a research note on Monday, April 6th. Zacks Research downgraded Rocket Companies from a "hold" rating to a "strong sell" rating in a research note on Monday, April 13th. Finally, Compass Point started coverage on Rocket Companies in a research note on Tuesday, March 10th. They set a "buy" rating and a $21.00 target price on the stock. Nine analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $21.00.

About Rocket Companies

Rocket Companies, Inc is a Detroit-based holding company whose businesses are centered on digital mortgage origination and related consumer finance and real estate services. The company grew out of the Quicken Loans franchise and completed an initial public offering in 2020. Founder Dan Gilbert remains a prominent figure associated with the firm, which operates a suite of brands that aim to simplify the home financing and buying experience through technology and scale.

The company's core activity is mortgage lending through its Rocket Mortgage platform, which offers online application, underwriting and servicing for home purchase and refinance loans.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.