DETROIT - Rocket Companies, Inc. (NYSE: RKT) reported third quarter earnings that met expectations, but shares plunged 10% in after-hours trading as the mortgage lender provided disappointing revenue guidance for the fourth quarter.
The Detroit-based fintech company posted adjusted earnings per share of $0.08 in Q3, in line with analyst estimates. Revenue came in at $1.32 billion, surpassing the consensus forecast of $1.26 billion and rising 32% year-over-year.
However, Rocket's outlook for Q4 fell short of Wall Street projections. The company expects revenue between $1.05 billion to $1.2 billion, below analysts' expectations of $1.36 billion.
"We delivered strong third-quarter results, expanding purchase and refinance market share, and increasing adjusted revenue by 32% year-over-year. Our adjusted EBITDA was the highest in two years," said Varun Krishna, CEO of Rocket Companies.
Rocket Mortgage generated $29.8 billion in net rate lock volume in Q3, up 43% from the same period last year. Closed loan origination volume increased 28% year-over-year to $28.5 billion.
The company's servicing portfolio unpaid principal balance stood at $546.1 billion as of September 30, representing approximately 2.6 million loans serviced.
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