Rocket Companies (NYSE:RKT – Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.01, FiscalAI reports. Rocket Companies had a net margin of 4.70% and a return on equity of 5.13%. The firm had revenue of $2.57 billion for the quarter, compared to the consensus estimate of $2.58 billion. During the same period last year, the firm posted $0.07 earnings per share. The company’s revenue for the quarter was up 37.4% on a year-over-year basis.
Here are the key takeaways from Rocket Companies’ conference call:
- Rocket grew market share and expanded profitability despite a difficult mortgage market, reporting $2.6 billion in adjusted revenue, $748 million in adjusted EBITDA, a 29% margin, and $0.15 in adjusted EPS. Purchase share approached 6.5% and refinance share reached 15.5%.
- The company highlighted continued strength in servicing, home equity, cash-out refinancing, and recapture. Servicing generated roughly $1 billion in quarterly fee income, while recapture reached record levels and helped support higher gain-on-sale margins.
- Rocket expects to complete the remaining $100 million of annualized Mr. Cooper expense synergies in the fourth quarter, one year ahead of schedule, and has identified an additional $100 million in savings for the first half of 2027. Record liquidity of $11.4 billion and net corporate leverage below one turn provide capacity for further investment or acquisitions.
- Management expects the fourth quarter to be materially weaker as mortgage rates remain elevated and refinance applications fall more than 50% year over year. Adjusted revenue guidance is $2.1 billion to $2.3 billion, and executives warned that the broader mortgage market could reach its lowest level in decades.
Rocket Companies Stock Up 4.9%
Shares of RKT stock traded up $0.58 during trading on Friday, reaching $12.50. The company’s stock had a trading volume of 20,362,774 shares, compared to its average volume of 30,192,531. The company has a debt-to-equity ratio of 1.16, a current ratio of 4.85 and a quick ratio of 4.85. Rocket Companies has a 1-year low of $10.18 and a 1-year high of $24.36. The company has a market capitalization of $35.40 billion, a price-to-earnings ratio of 89.18, a P/E/G ratio of 3.46 and a beta of 2.23. The stock’s 50-day moving average price is $12.40 and its 200 day moving average price is $14.81.
Insider Activity
Analyst Upgrades and Downgrades
Several equities research analysts recently commented on RKT shares. JPMorgan Chase & Co. cut their price target on Rocket Companies from $14.00 to $12.50 and set a “neutral” rating for the company in a report on Monday, October 12th. Wells Fargo & Company set a $13.00 price target on shares of Rocket Companies and gave the company an “equal weight” rating in a research report on Tuesday, October 6th. Barclays dropped their price objective on shares of Rocket Companies from $17.00 to $15.00 and set an “overweight” rating for the company in a report on Monday, October 5th. Morgan Stanley set a $16.00 target price on shares of Rocket Companies and gave the stock an “overweight” rating in a research note on Monday, October 12th. Finally, Stephens dropped their price target on shares of Rocket Companies from $22.50 to $20.00 and set an “overweight” rating for the company in a research note on Friday, August 7th. Eight analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Rocket Companies currently has a consensus rating of “Moderate Buy” and an average price target of $18.88.
Check Out Our Latest Stock Analysis on RKT
More Rocket Companies News
Here are the key news stories impacting Rocket Companies this week:
- Positive Sentiment: Profitability exceeded expectations. Rocket reported third-quarter adjusted EPS of $0.15, ahead of the $0.14 consensus estimate and more than double the $0.07 reported a year earlier. Adjusted revenue reached $2.57 billion, while GAAP net income was $709 million and adjusted net income was $419 million. Rocket Companies Announces Third Quarter 2026 Results
- Positive Sentiment: Strong year-over-year growth reinforced the earnings reaction. Revenue increased substantially from the prior-year period, and analysts characterized the quarter as an upside earnings surprise with improving profitability despite elevated mortgage rates. Rocket Companies Q3 earnings surprise to the upside as profitability improves
- Neutral Sentiment: Analyst sentiment remains favorable. Brokerages cited an average price target of approximately $18.88, well above the recent trading level, but targets may change following the earnings release. Rocket Companies consensus price target
- Negative Sentiment: Housing affordability remains a headwind. U.S. home-sale prices recently declined for the first time in more than three years, while mortgage payments remain near record highs. These conditions could weigh on purchase activity and mortgage demand. U.S. Home-Sale Prices Just Fell for the First Time in 3 Years
- Negative Sentiment: Fourth-quarter guidance was cautious. Rocket expects Q4 revenue of $2.10 billion to $2.30 billion, implying a sequential slowdown from Q3 and keeping the stock sensitive to interest rates and housing-market conditions. Rocket Companies Q4 revenue outlook
About Rocket Companies
Rocket Companies, Inc is a Detroit-based financial technology company that operates a portfolio of consumer finance and real estate businesses. Its platform is designed to simplify the homeownership process through digital applications, automated workflows and online customer support.
The company’s principal business is Rocket Mortgage, a residential mortgage lender and servicer offering home purchase, refinance and home equity products. Its broader portfolio includes Rocket Homes, a real estate services platform; Rocket Money, a personal finance app that helps consumers manage subscriptions, budgets and bills; Rocket Loans, which provides personal loans; and Rocket Pro, which supports mortgage brokers and other partners.
Rocket Companies traces its history to 1985, when Dan Gilbert founded Rock Financial.
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