Rocket Cos. reported preliminary second-quarter earnings of $3.5 billion, a figure toward the
The news helped Rocket's stock open trading on Aug. 14 over 10% higher than its previous close, at $20.30 per share. After the
Rocket posted a second-quarter net revenue of $5 billion, which landed in the middle of the previously disclosed range between $4.93 billion and $5.13 billion. The second quarter's gain on sale of $4.8 billion drove the revenue, an increase of $2.9 billion from the first quarter's $1.9 billion and $3.6 billion above the $1.2 billion reported for the second quarter last year.
Its gain-on-sale margin rose to 5.19%, up from 3.25% in the first quarter and 3.22% one year ago. Generally favorable market conditions attributed to the increase, leading to
Rocket previously reported $72.3 billion in total originations for the quarter, the most in the industry, and more than $12 billion over Wells Fargo.
"The long-term investments we have made in our people and our flexible, scalable technology platform have allowed us to increase our capacity, take advantage of favorable market conditions, and in turn position us to capture additional market share," CEO Jay Farner said in a press release. "While I'm excited about our second-quarter performance, I also believe our innovative culture will allow us to capitalize on the significant opportunities ahead."
On the servicing side, Rocket reported a $274 million fair value adjustment to its mortgage servicing rights holdings. Adjusted revenue, which does not include the MSR valuation adjustment, was $5.3 billion for the second quarter. Other servicing-related financial information was not disclosed in this release.
Rocket, however, will be doing a full second-quarter earnings and conference call on Sept. 2.
