Real estate technology company Compass (NYSE: COMP) will be reporting earnings tomorrow after market close. Here’s what you need to know.
Compass met analysts’ revenue expectations last quarter, reporting revenues of $1.49 billion, up 11.7% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 55,872 transactions, up 16.1% year on year.
Is Compass a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Compass’s revenue to grow 21.8% year on year to $1.34 billion, improving from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Compass has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Compass’s peers in the real estate services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Marcus & Millichap delivered year-on-year revenue growth of 44.4%, beating analysts’ expectations by 20.2%, and Zillow reported revenues up 16.9%, topping estimates by 1.1%. Marcus & Millichap traded up 5.4% following the results while Zillow was down 10.7%.
Read our full analysis of Marcus & Millichap’s results here and Zillow’s results here.
Investors in the real estate services segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Compass is up 17% during the same time and is heading into earnings with an average analyst price target of $7.94 (compared to the current share price of $7.90).
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