Fintech mortgage provider Rocket Companies (NYSE: RKT) will be reporting earnings this Thursday afternoon. Here’s what to look for.
Rocket Companies beat analysts’ revenue expectations last quarter, reporting revenues of $2.44 billion, up 105% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue 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 113% year on year, improving from the 11.4% increase it recorded in the same quarter last year.
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 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 Q1 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4%, and Northwest Bancshares reported revenues up 12.1%, topping estimates by 0.8%. WaFd Bank traded up 8.4% following the results while Northwest Bancshares was also up 5%.
Read our full analysis of WaFd Bank’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 4.6% on average over the last month. Rocket Companies is down 5.7% during the same time and is heading into earnings with an average analyst price target of $20.73 (compared to the current share price of $14.18).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
