RKT , nice earnings beat today (Sept 2nd)

3 sept 2020

Reported Q2 revenue today of 5.04 Billion and the consensus estimate was 3.75 Billion , that is a big difference. Then oddly enough, after this there was a fairly significant drop in the share price after hours, to which I could not find the reason for. Having said that, I personally have learned not to play earnings as you can have all the reasons in the world for a company to rally and the exact opposite can happen, sometimes for very little reason .

I have done my research into this recent IPO and I really like it. I am short on time to do a more detailed write up that RKT deserves but I am a fan of the stock. Wanted to mention it quickly and leave the additional research up to the reader . Great longer term hold with a discounted price imo.

3 sept 2020

Nota

This is why the drop occurred ...

Although, the company said that it continues to expect strong demand for home loans in 3Q, they look sluggish in comparison to 2Q growth. Rocket expects 3Q net rate lock volume to range between $93 billion and $98 billion, an increase of 98% to 108% year-over-year. The growth rate is slower than the 170% growth experienced in 2Q. Closed loan volume in 3Q is expected to increase between 105% to 112% year-on-year. In 2Q closed loan volume grew 126% year-over-year growth.

So essentially they are still expecting positive growth in Q3 just slightly less than this quarters beat. Not that negative in my opinion . Still like RKT.