Rocket Cos. Reported preliminary earnings of $ 3.5 billion for the second quarter, a figure that was at the high end of the range it had provided before the company went public.
The news helped Rockets shares trade more than 10% higher than before on August 14, at $ 20.30 per share. After the initial euphoria of the initial public offering on August 6, the share price trended back to its original starting price of $ 18 per share.
Rocket had net sales of $ 5 billion for the second quarter, which was in the middle of the previously stated range of $ 4.93 billion to $ 5.13 billion. Second quarter sales profit of $ 4.8 billion resulted in revenue growth of $ 2.9 billion from $ 1.9 billion in the first quarter and $ 3.6 billion from $ 1.2 billion Dollars in the second quarter of last year.
The profit margin rose to 5.19% from 3.25% in the first quarter and 3.22% a year ago. Generally favorable market conditions attributable to the surge resulting in increased demand for mortgages and capacity constraints in the industry, leading to consumers being charged higher refinancing rates.
Rocket previously reported $ 72.3 billion in total origins for the quarter, most in the industry, and more than $ 12 billion through Wells Fargo.
"The long-term investments that we have made in our people and our flexible, scalable technology platform have enabled us to increase our capacity, take advantage of favorable market conditions and in return gain additional market share," said CEO Jay Farner in a press release. "While I am thrilled with our performance in the second quarter, I also believe that our culture of innovation will allow us to capitalize on the significant opportunities that lie ahead."
On the service side, Rocket reported a fair value adjustment of $ 274 million for its holdings of mortgage service rights. Adjusted revenue, which excludes the MSR rating adjustment, was $ 5.3 billion for the second quarter. Additional maintenance-related financial information was not disclosed in this press release.
However, Rocket will host a full Q2 conference call and conference call on September 2nd.