Rocket Companies Earnings Approach – Analysts Mixed on Outlook (RKT)

Rocket Companies (NYSE: RKT) is set to unveil its second-quarter 2025 earnings report after today's closing bell, with markets looking for modest revenue growth, but a drop in EPS.

Rocket's Q2 revenue is projected to come in at $1.23billion, reflecting a 4.2% growth rate Y/Y. EPS is earmarked at $0.03 for the period, a 50% drop compared to the $0.06 delivered last year, and a sequential decline from the $0.04 in the most recent earnings print.

The upcoming earnings report will likely provide updates on the company's significant acquisition of Mr. Cooper Group, expected to close in Q4 2025. This acquisition is a cornerstone of Rocket's strategy to create an integrated homeownership platform.

“We are building a comprehensive ecosystem that simplifies the homeownership journey,” a Rocket Companies spokesperson stated, emphasizing the long-term vision behind the acquisitions.

Analysts at Jefferies recently revised their price target on Rocket's stock, raising from $11.50 to $14, albeit with a note that indicated consensus estimates for Q2 could be “too optimistic”. The firm maintained a Hold rating, expecting the Mr Cooper acquisition to add to EPS over the coming years 26/27.

Rocket's strategic initiatives extend beyond acquisitions. The company has invested heavily in artificial intelligence (AI) to enhance operational efficiency and customer experience. AI tools have reportedly led to a 50% reduction in remediation costs and are projected to save over $1 million in 2025.

Furthermore, AI has enabled a 50% increase in clients served per production team member.

The mortgage industry's challenges, stemming from fluctuating interest rates and a fragmented housing market, have prompted a cautious outlook from Rocket. The average price target on the street at $14.55 sits marginally below the current price action, with the street seeing the stock as fully valued leading in.

Despite this, the stock has added 35% since the turn of the year, yet remains 9.5% below the same point 12 months ago. There have been 5 downward revisions to EPS estimates in the month leading into today's earnings, with 2 analysts revising to the upside.