Earnings

Quicken Loans parent swings to profit in first results since IPO

The Rocket Mortgage by Quicken Loans app is displayed on a smartphone Aug. 6, 2020.

Gabby Jones | Bloomberg via Getty Images

Rocket Companies, the parent of mortgage lender Quicken Loans, swung to a quarterly profit in its first results as a public company on Wednesday, driven by higher borrowings on the back of lower interest rates.

Shares of the company were last down 5% in volatile trading after the bell. They have gained 45.5% since their debut on Aug. 6.

The company, founded by billionaire Dan Gilbert, raised $1.8 billion in its downsized initial public offering, giving it a valuation of $36 billion.

Rocket’s quarterly net revenue rose to $5.04 billion from $937.5 million in the second quarter ended June 30.

Its closed loan origination volume more than doubled to $72.32 billion.

The company’s net income was $3.5 billion in the quarter, compared to a loss of $54 million a year earlier.

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