What happened
Investors bid up Rocket Companies' (RKT +2.09%) share price on Wednesday ahead of the mortgage giant's upcoming earnings release. As of 11:50 a.m. EDT, Rocket's stock was up 7%.
So what
Rocket Companies announced preliminary second-quarter results on Aug. 14 that stunned investors. Its net revenue skyrocketed 437% year over year to $5 billion, fueled by a 126% jump in loan origination volume, to $72.3 billion.
Better still, Rocket's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed an incredible 868% to $3.8 billion, while its adjusted net income soared 995% year over year to $2.8 billion.
Booming demand for mortgages is fueling Rocket Companies' growth. Image source: Getty Images.
Housing data has remained strong since then. The National Association of Realtors said on Aug. 21 sales of existing homes in July rose 24% compared to June. And today, the Mortgage Bankers Association reported a 40% year-over-year surge in mortgage refinancing applications for the past week.
Now what
This positive housing data bodes well for Rocket Companies' future growth prospects. Investors, in turn, are eagerly anticipating the company's upcoming earnings report, which is due out later today after the market close. Management will also host a conference call for analysts and investors, which is scheduled for 4:30 p.m. EDT.
