![]() ![]() Q4 closed loan origination volume at $76 billion was down 29% y/y, the level was still up 49% over Q4 2019. ![]() Most financial and operating metrics were up from 2019. Similarly, while the full year 2021 total revenue at $12.9 billion was down 17.5% y/y, the result was up 155% compared to 2019. By this measure, total revenues this quarter were up 36% compared to Q4 2019. In our view, it's important to place these latest results in the context of a 2-year stacked basis against 2019 pre-pandemic levels to get a sense of the more normalized trends in the business which are solid. This means that the boom for Rocket Companies in 2020 created a tough comparison period for 2021. The story here is that the Q4 period last year and the second half of 2020, in particular, were exceptionally strong defined by the early stages of the pandemic where sharply lower interest rates led to a surge of refinancing and home buying activity. Adjusted revenue of $2.44 billion was also slightly lower than the consensus estimate by $180 million, and down 45% year-over-year. Rocket Companies reported its Q4 earnings on February 24th with a non-GAAP EPS of $0.32 which missed expectations by $0.05. Seeking Alpha How Was Rocket Companies' Earnings Report? RKT is supported by overall solid fundamentals and a positive long-term outlook. Still, we like the stock, viewing the recent selloff as helping to balance the valuation into low expectations. The latest quarterly result was highlighted by continued momentum in loan originations as the core business although shares of RKT have been under pressure amid concerns of a potential slowdown into rising interest rates which is already impacting earnings. The company has benefited from the strong housing market since the start of the pandemic which has supported record growth and a climbing market share. which has leveraged its leadership position into a variety of fintech businesses including diversified real estate services, personal finance, and used car loans. ( NYSE: RKT) is the largest mortgage lender in the U.S. ![]()
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