(Bloomberg) -- Rocket Cos. shares slumped as much as 16% in late trading Tuesday after the online lender said it expects revenue to drop this quarter.
The firm, best known for its home loans, said it expects fourth-quarter adjusted revenue to fall to a range of $1.05 billion to $1.2 billion. Third-quarter adjusted revenue totaled $1.32 billion, according to a statement after the close of regular US trading.
Shares declined 10% to $14.15 at 4:45 p.m. in late New York trading, after earlier falling as low as $13.11. They closed at $15.54 in regular trading.
Home lenders have struggled with a sluggish mortgage market as interest rates have remained elevated from their pre-pandemic levels, though Rocket has eyed technology — and artificial intelligence in particular — as a way of setting itself apart from its rivals.
Rocket “delivered strong third-quarter results, expanding purchase and refinance market share, and increasing adjusted revenue by 32% year-over-year,” Chief Executive Officer Varun Krishna said in the statement.
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