Rocket Companies’ First Quarter Profits Are Up as New Loans Hit $20 Billion (NYSE:RKT)

Rocket companies (NYSE: RKT) stock rose 1.7% in after-hours trading on Thursday, after the fintech-focused lender posted its third consecutive quarter of accelerating revenue growth and the highest profitability in two years.

Rocket Mortgage’s parent company expects second-quarter adjusted revenue of $1.075 billion to $1.225 billion versus $1.22 billion consensus and $1.16 billion reported for the first quarter.

The volume of loans closed in the first quarter rose to $20.2 billion, compared to $17.3 billion in the previous quarter and $16.9 billion in the year-ago period. The profit on sales margin of 3.11% improved from 2.68% in the fourth quarter and 2.39% in the first quarter of 2023.

First quarter adjusted earnings per share of $0.04, higher than average analyst expectations of $0.01, rose from $0.00 in Q4 2023 and -$0.06 in Q1 2023.

First-quarter adjusted revenue was $1.16 billion, above the $1.02 billion consensus, rising from $885 million in the previous quarter and $882 million a year ago.

Total costs increased from $937 million in the fourth quarter and $1.08 billion in the first quarter of 2023.

Adjusted EBITDA of $174 million increased from $55 million in the previous quarter and -$79 million a year ago.

Previously, Rocket Companies’ non-GAAP earnings per share rose $0.03 from $0.04, while revenue of $1.2 billion surpassed $180 million