Fintech mortgage provider Rocket Companies (NYSE: RKT) will be reporting earnings this Thursday after the bell. Here’s what to look for.
Rocket Companies missed analysts’ revenue expectations last quarter, reporting revenues of $2.76 billion, up 92.9% year on year. It was a disappointing quarter for the company, with EPS in line with analysts’ estimates.
Is Rocket Companies a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Rocket Companies’s revenue to grow 44.5% year on year, improving from the 25% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Rocket Companies rarely misses Wall Street’s revenue estimates.
Looking at Rocket Companies’s peers in the thrifts & mortgage finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ladder Capital delivered year-on-year revenue growth of 107%, beating analysts’ expectations by 53.9%, and WaFd Bank reported revenues up 17.6%, topping estimates by 8.3%. Ladder Capital’s stock price was unchanged after the resultswhile WaFd Bank was down 1%.
Read our full analysis of Ladder Capital’s results here and WaFd Bank’s results here.
Investors in the thrifts & mortgage finance segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Rocket Companies is up 1.3% during the same time and is heading into earnings with an average analyst price target of $15.77 (compared to the current share price of $11.81).
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