As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including Cushman & Wakefield (NYSE: CWK) and its peers.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 13 real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.7% below.
Luckily, real estate services stocks have performed well with share prices up 29% on average since the latest earnings results.
Cushman & Wakefield (NYSE: CWK)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Cushman & Wakefield reported revenues of $2.28 billion, up 4.6% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 25.3% since reporting and currently trades at $11.28.
Is now the time to buy Cushman & Wakefield? Access our full analysis of the earnings results here, it’s free.
Best Q1: The Real Brokerage (NASDAQ: REAX)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $354 million, up 76.3% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The Real Brokerage scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.3% since reporting. It currently trades at $4.05.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: eXp World (NASDAQ: EXPI)
Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $954.9 million, up 1.3% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 18.9% since the results and currently trades at $10.31.
Read our full analysis of eXp World’s results here.
CBRE (NYSE: CBRE)
Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.
CBRE reported revenues of $8.91 billion, up 12.3% year on year. This number surpassed analysts’ expectations by 0.6%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 13.8% since reporting and currently trades at $138.77.
Read our full, actionable report on CBRE here, it’s free.
Redfin (NASDAQ: RDFN)
Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ: RDFN) is a real estate company offering brokerage services through an online platform.
Redfin reported revenues of $221 million, down 2% year on year. This print met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
The stock is up 27.9% since reporting and currently trades at $11.30.
Read our full, actionable report on Redfin here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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