Analyst Note| Michael Miller |
Narrow-moat-rated Rocket Companies reported another weak quarter as the company faced new lows for mortgage origination volume industrywide, due primarily to rapidly increasing mortgage rates, which have risen above 7%. Rocket reported net revenue of $1.3 billion, which was 58.5% below last year's results and 7% below last quarter's results. Earnings per share was $0.04 compared with $0.54 last year. Without a $400 million positive valuation adjustment on the company’s mortgage servicing assets for the third quarter, Rocket would have reported a loss.