Rocket Companies jump 9% after reporting sky-high preliminary profit growth (RKT)

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  • Shares of the recently listed Rocket companies jumped 9% on Friday after the company reported strong preliminary second quarter results.
  • The mortgage company has likely benefited from low interest rates, which have led to a refinancing boom, and increased demand for housing amid the COVID-19 pandemic.
  • The volume of loan origination climbed 126% year-on-year, while adjusted net income jumped nearly 1,000% year-on-year, according to the results.
  • Visit the Business Insider homepage for more stories.

Rocket companies seems to have chosen the right time to go public as it reports strong earnings growth.

The recently floated mortgage company benefited from two major positive winds in 2020: mortgage rates still low, which has led to a boom in refinancing existing mortgages and an increase in demand for housing as people flee cities for suburban backyards amid the COVID-19 pandemic.

Friday, Rocket announcement preliminary second quarter results, which revealed stunning growth figures for the Ohio-based company.

Here are the key figures:

Returned: $ 5.0 billion, representing 437% year-over-year growth
Adjusted net income:
$ 2.8 billion, representing a 995% year-over-year growth
Original volume of closed loans:
$ 72.3 billion, representing a 126% year-over-year growth

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CEO Jay Farner attributed the massive growth to Rocket’s long-term technology investments, which allowed the company to grow rapidly as it sees increased demand for mortgages.

Rocket went public on August 6 and saw his actions jump up to 26% on its first day of trading. The shares are up 14% since its first print IPO of $ 18.00.

Rocket will hold its first call for results on September 2.

Rocket shares rose 9% to $ 20.43 in Friday trades.

Rocket companies chrt.JPGMarket insider

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