Looking back on real estate services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Compass (NYSE: COMP) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 1.4% below.
While some real estate services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.1% since the latest earnings results.
Compass (NYSE: COMP)
Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE: COMP) is a digital-first company operating a residential real estate brokerage in the United States.
Compass reported revenues of $1.49 billion, up 11.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.
The stock is up 33.9% since reporting and currently trades at $7.45.
Is now the time to buy Compass? Access our full analysis of the earnings results 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. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $5.60.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $1.23 billion, up 1.5% year on year, falling short of analysts’ expectations by 3.4%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
eXp World delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22.2% since the results and currently trades at $11.20.
Read our full analysis of eXp World’s results here.
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 number topped analysts’ expectations by 4.7%. It was a stunning quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is down 6.8% since reporting and currently trades at $37.46.
Read our full, actionable report on Marcus & Millichap here, it’s free.
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. This result beat analysts’ expectations by 1.7%. However, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates.
Offerpad had the slowest revenue growth among its peers. The stock is down 30% since reporting and currently trades at $2.29.
Read our full, actionable report on Offerpad here, it’s free.
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