Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Marcus & Millichap (NYSE: MMI) and its peers.
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The 13 real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.7% below.
In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.
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 $145 million, up 12.3% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“We are pleased to report an improved first quarter, reflecting our strategic focus and ability to execute despite persistent headwinds across the sector,” said Hessam Nadji, president and chief executive officer of Marcus & Millichap.
The stock is up 4.5% since reporting and currently trades at $30.71.
Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $354 million, up 76.3% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with 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 market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $4.52.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $954.9 million, up 1.3% year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 7.3% since the results and currently trades at $9.30.
Read our full analysis of eXp World’s results here.
Cushman & Wakefield (NYSE: CWK)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Cushman & Wakefield reported revenues of $2.28 billion, up 4.6% year on year. This print topped analysts’ expectations by 2.5%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 23% since reporting and currently trades at $11.07.
Read our full, actionable report on Cushman & Wakefield here, it’s free.
Opendoor (NASDAQ: OPEN)
Founded by real estate guru Eric Wu, Opendoor (NASDAQ: OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Opendoor reported revenues of $1.15 billion, down 2.4% year on year. This number beat analysts’ expectations by 9.3%. It was an exceptional quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Opendoor pulled off the biggest analyst estimates beat among its peers. The stock is down 22.8% since reporting and currently trades at $0.54.
Read our full, actionable report on Opendoor here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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