Rocket Companies Inc. shares are trading lower by 5.5 percent after the mortgage lender reported a sharp decline in revenue.
On Tuesday afternoon, Rocket reported first-quarter adjusted EPS of 15 cents, missing consensus analyst estimates of 19 cents. Revenue for the quarter was $2.67 billion, beating Wall Street’s expectations of $2.17 billion. Revenue was down 41 percent from a year ago.
Rocket reported closed loan origination volume of nearly $54 billion, down from $103.5 billion in the first quarter of 2021. Gain on sale margin of 3.01 percent was also down from 3.74 percent a year ago.
Looking ahead, Rocket guided for second-quarter closed loan volume of between $35 billion and $40 billion and gain on sale margins of between 2.6 percent and 2.9 percent.
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