A still-fresh name on the stock exchange, Rocket Companies (RKT +1.53%), has released its first set of quarterly results, although they're preliminary. For its Q2 of fiscal 2020, Rocket Companies -- which owns Rocket Mortgage, the largest housing loan originator in the U.S., as well as Quicken Loans -- saw its net revenue increase by 437% on a year-over-year basis to $5 billion. That was on the back of loan origination volume that more than doubled over that stretch of time to more than $72 billion -- a new record for the company.
The bottom line also saw a dramatic improvement, flipping to a profit of $3.5 billion from a Q2 2019 loss of $54 million.
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In the press release unveiling the results, Rocket Companies quoted its CEO Jay Farmer as saying, "The long-term investments we have made in our people and our flexible, scalable technology platform have allowed us to increase our capacity, take advantage of favorable market conditions, and in turn position us to capture additional market share."
Rocket Companies did not proffer any guidance, either for its current quarter or the entirety of 2020.
The release of its preliminary Q2 numbers comes very shortly after its shares began trading on the New York Stock Exchange. This followed the company's initial public offering (IPO) that, despite the issuer's high profile, was downsized considerably, from 150 million shares to 100 million. The original target price was also reduced. Those shares ended up selling at $18 apiece for total gross proceeds of around $1.8 billion.
On Friday, Rocket Companies' shares closed the day nearly 1.2% higher on the good news, contrasting with the slump of the S&P 500 index.
