As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the real estate services industry, including RE/MAX (NYSE: RMAX) 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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 5.5% while next quarter’s revenue guidance was 1.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.8% 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 $72.47 million, down 5.4% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and EBITDA guidance for next quarter missing analysts’ expectations.
RE/MAX delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 12.3% since reporting and currently trades at $8.88.
Read our full report on RE/MAX here, it’s free.
Best Q4: 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 $350.6 million, up 93.4% year on year, outperforming analysts’ expectations by 16.8%. 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 pulled off 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 14% since reporting. It currently trades at $4.26.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $174.3 million, down 27.5% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 17.1% since the results and currently trades at $1.80.
Read our full analysis of Offerpad’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 $240.1 million, up 44.4% year on year. This number beat analysts’ expectations by 20.2%. Overall, it was an incredible quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Marcus & Millichap achieved the biggest analyst estimates beat among its peers. The stock is down 4.5% since reporting and currently trades at $35.58.
Read our full, actionable report on Marcus & Millichap here, it’s free.
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 $1.10 billion, up 11.9% year on year. This print surpassed analysts’ expectations by 6.5%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
The stock is down 9.5% since reporting and currently trades at $10.28.
Read our full, actionable report on eXp World here, it’s free.
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