Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at RE/MAX (NYSE: RMAX) and the best and worst performers in the real estate services industry.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 7.8% below.
Luckily, real estate services stocks have performed well with share prices up 12.2% on average since the latest earnings results.
RE/MAX (NYSE: RMAX)
Short for Real Estate Maximums, RE/MAX (NYSE: RMAX) operates a real estate franchise network spanning over 100 countries and territories.
RE/MAX reported revenues of $78.48 million, down 3.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter missing analysts’ expectations.
"We continue to drive operational efficiency across the enterprise, which helped generate better-than-forecasted third-quarter financial results," said Erik Carlson, RE/MAX Holdings Chief Executive Officer.
RE/MAX delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 8.6% since reporting and currently trades at $13.30.
Read our full report on RE/MAX here, it’s free.
Best Q3: 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 $372.5 million, up 73.5% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The Real Brokerage delivered the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.8% since reporting. It currently trades at $5.54.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Offerpad (NYSE: OPAD)
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Offerpad reported revenues of $208.1 million, down 11.2% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.
Offerpad delivered the slowest revenue growth in the group. Interestingly, the stock is up 49.8% since the results and currently trades at $4.90.
Read our full analysis of Offerpad’s results here.
JLL (NYSE: JLL)
Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.
JLL reported revenues of $5.87 billion, up 14.8% year on year. This number topped analysts’ expectations by 4.4%. It was a stunning quarter as it also put up a solid beat of analysts’ adjusted operating income and EPS estimates.
The stock is flat since reporting and currently trades at $278.15.
Read our full, actionable report on JLL here, it’s free.
Marcus & Millichap (NYSE: MMI)
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Marcus & Millichap reported revenues of $168.5 million, up 4% year on year. This print topped analysts’ expectations by 4.7%. Overall, it was a stunning quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 3.7% since reporting and currently trades at $41.67.
Read our full, actionable report on Marcus & Millichap 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 has 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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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