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Sep 30, 2020
Rocket Companies Q3 2020 Earnings Report
Rocket Companies reported record closed loan origination volume and a significant increase in GAAP net income, driven by the demand for home loans.
Key Takeaways
Rocket Companies announced strong Q3 2020 results, with record closed loan origination volume of $89.0 billion, a 122% increase year-over-year. GAAP net income increased by 506% year-over-year to $3.0 billion. The company also announced a $1 billion share repurchase authorization.
Generated record closed loan origination volume of $89.0 billion, up 122% year-over-year.
Increased gain on sale margin by 37% year-over-year to 4.52%.
Grew total revenue, net, by 186% and Adjusted Revenue by 163% compared to Q3 2019.
Approved a $1 billion share repurchase program.
Revenue by Segment
Forward Guidance
The company expects strong consumer demand for home loans to continue into the fourth quarter of 2020.
Positive Outlook
- Closed loan volume of between $88 billion and $93 billion, an increase of 73% to 83% compared to Q4 2019.
- Net rate lock volume of between $80 billion and $87 billion, an increase of 82% to 98% compared to Q4 2019.
- Gain on sale margins of 3.80% to 4.10%, an improvement of 11% to 20% compared to Q4 2019.
- Continued strong consumer demand for home loans.
- High net client retention and refinance recapture rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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