Rocket Companies (RKT) Reports Q4 Earnings: What Key Metrics Have to Say

Core Insights - Rocket Companies reported a revenue of $1.19 billion for the quarter ended December 2024, marking a 71.1$0.04 compared to $0.00 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of$1.16 billion, resulting in a surprise of +2.62%, while the EPS also surpassed expectations by +33.33% [1] Revenue Breakdown - Loan servicing income from servicing fees was $387.95 million, exceeding the average estimate of$378.79 million, reflecting an 11.6% year-over-year increase [4] - The change in fair value of mortgage servicing rights (MSRs) reported a revenue of $356.06 million, contrasting sharply with the average estimate of -$191.80 million, indicating a significant year-over-year decline of -199.5% [4] - Other income reached $292.49 million, surpassing the estimated$256.69 million, representing a 25.8% increase from the previous year [4] - Gain on sale of loans, net, was reported at $710.74 million, slightly above the average estimate of$706.49 million, showing a year-over-year increase of 65.2% [4] - Net loan servicing income was $744.02 million, significantly higher than the average estimate of$187.19 million, but reflecting a drastic year-over-year decline of -7465.1% [4] - Interest income, net, was $22.16 million, slightly above the estimated$21.76 million, but down 46.2% compared to the previous year [4] Stock Performance - Over the past month, shares of Rocket Companies have returned +5.5%, contrasting with a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]