Fintech mortgage provider Rocket Companies (NYSE:RKT) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Rocket Companies missed analysts’ revenue expectations by 15.2% last quarter, reporting revenues of $1.04 billion, down 25% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ tangible book value per share estimates and EPS in line with analysts’ estimates.
Is Rocket Companies a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rocket Companies’s revenue to decline 1.2% year on year to $1.29 billion, a reversal from the 5.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rocket Companies has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Rocket Companies’s peers in the thrifts & mortgage finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PennyMac Financial Services’s revenues decreased 7.1% year on year, missing analysts’ expectations by 19.8%, and Northwest Bancshares reported revenues up 53.5%, topping estimates by 1.6%. PennyMac Financial Services traded down 7.5% following the results.
Read our full analysis of PennyMac Financial Services’s results here and Northwest Bancshares’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 3.4% on average over the last month. Rocket Companies is up 7.2% during the same time and is heading into earnings with an average analyst price target of $14.55 (compared to the current share price of $15.20).
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