Rocket Earnings: Adjusted Net Revenue Jumps Higher as Lower Rates Push Origination Volume Higher

Narrow-moat-rated Rocket Companies reported solid results as lower mortgage rates in the quarter led to a sharp uptick in mortgage origination volume for the company. That said, a $676 million fair value adjustment to the firm’s mortgage servicing assets meant that reported revenue and net income appeared far worse than they were. Net revenue decreased 46% from last year to $647 million or rose 31% to $1.3 billion on an adjusted basis. Meanwhile, adjusted earnings per share rose to $0.08 from effectively break-even last year.