Interim CEO says results "reflective of our continued focus on operating a growing and efficient business"
Rocket Cos. (Rocket) has announced its second-quarter earnings, surpassing expectations despite a slowdown in the housing market caused by higher mortgage rates, as reported by Bloomberg.
The Detroit-based company, known as one of the largest mortgage providers in the US, reported an adjusted revenue of approximately $1 billion for the period, which was slightly lower than the same quarter the previous year but still better than analysts had predicted. Moreover, the company’s closed-loan origination volume reached an impressive $22.33 billion, exceeding initial forecasts.
Rocket is also going through a leadership transition, with Varun Krishna, a former executive from Intuit Inc., set to take over as chief executive officer on September 5, succeeding interim CEO Bill Emerson, who will assume the roles of president and chief operating officer.
“Against the backdrop of housing affordability and inventory challenges, we reported adjusted revenue that exceeded the high end of our guidance range,” said Emerson, as quoted by Bloomberg.
“These results are reflective of our continued focus on operating a growing and efficient business.”
Despite the current stagnation in the housing market due to rising mortgage rates, Rocket remains optimistic about its future prospects. The company anticipates third-quarter adjusted net revenue to fall between $850 million and $1 billion.
Following the earnings report, Rocket shares rose by approximately 1.8% during late New York trading.
