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Dec 31, 2020
Rocket Companies Q4 2020 Earnings Report
Rocket Companies experienced substantial growth in Q4 2020, marked by a significant revenue increase and a special dividend announcement.
Key Takeaways
Rocket Companies reported a strong Q4 2020 with a 144% increase in revenue to $4.7 billion and a 277% increase in net income to $2.8 billion year-over-year. The company also announced a special dividend of $1.11 per Class A share.
Total revenue increased by 144% year-over-year to $4.7 billion.
Net income grew by 277% year-over-year to $2.8 billion.
Closed loan origination volume reached a record $107.2 billion, up 111% year-over-year.
Gain on sale margin increased to 4.41%, a 100 basis point increase year-over-year.
Revenue by Segment
Forward Guidance
Rocket Companies anticipates continued growth in Q1 2021, with expectations for closed loan volume between $98 billion and $103 billion and gain on sale margins between 3.60% and 3.90%.
Positive Outlook
- Closed loan volume of between $98 billion and $103 billion, or an increase of 90% to 99% compared to $51.7 billion in the first quarter of 2020.
- Net rate lock volume of between $88 billion and $95 billion, which would represent an increase of 57% to 70% compared to $56.0 billion in the first quarter of 2020.
- Gain on sale margins of 3.60% to 3.90%, which would be an improvement of 35 to 65 basis points compared to 3.25% in the first quarter of 2020.
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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