The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how real estate services stocks fared in Q4, starting with CBRE (NYSE: CBRE).
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 10.4% since the latest earnings results.
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 $10.4 billion, up 16.2% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ adjusted operating income estimates.
“The fourth quarter was CBRE’s best quarter ever for core earnings and free cash flow with broad strength across our business,” said Bob Sulentic, CBRE’s chair and chief executive officer.
The stock is down 6.7% since reporting and currently trades at $131.27.
Is now the time to buy CBRE? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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, outperforming analysts’ expectations by 20.2%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Marcus & Millichap scored the biggest analyst estimates beat 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 4.1% since reporting. It currently trades at $35.74.
Is now the time to buy Marcus & Millichap? 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 23.8% since the results and currently trades at $1.65.
Read our full analysis of Offerpad’s results here.
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. This print beat analysts’ expectations by 16.8%. Overall, it was an incredible quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The Real Brokerage pulled off the fastest revenue growth among its peers. The stock is down 13.8% since reporting and currently trades at $4.27.
Read our full, actionable report on The Real Brokerage here, it’s free.
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 $1.38 billion, up 25.9% year on year. This result surpassed analysts’ expectations by 3.4%. It was a strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
The stock is up 9.3% since reporting and currently trades at $8.72.
Read our full, actionable report on Compass here, it’s free.
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