Fintech mortgage provider Rocket Companies (NYSE:RKT) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Rocket Companies beat analysts’ revenue expectations last quarter, reporting revenues of $2.82 billion, up 108% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS 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 98.2% year on year, improving from the 9.4% 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 has a history of exceeding Wall Street’s expectations.
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. Arbor Realty Trust’s revenues decreased 11.1% year on year, beating analysts’ expectations by 7.1%, and Northwest Bancshares reported revenues up 20.2%, topping estimates by 1%. Arbor Realty Trust traded up 7.7% following the results while Northwest Bancshares was also up 3.2%.
Read our full analysis of Arbor Realty Trust’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 2.3% on average over the last month. Rocket Companies is down 9.1% during the same time and is heading into earnings with an average analyst price target of $19.02 (compared to the current share price of $14.14).
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