Looking back on real estate services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including The Real Brokerage (NASDAQ: REAX) 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 12 real estate services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.9% above.
Thankfully, share prices of the companies have been resilient as they are up 9.6% on average since the latest earnings results.
Best Q2: 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 $540.7 million, up 58.7% year on year. This print exceeded analysts’ expectations by 12.1%. Overall, it was a stunning quarter for the company with EPS in line with analysts’ estimates and a solid beat of analysts’ EBITDA estimates.
“This quarter marks a pivotal moment for Real, as we proudly announce our first-ever quarter of positive net income,” said Tamir Poleg, Real’s Chairman and Chief Executive Officer.
The Real Brokerage pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 9.1% since reporting and currently trades at $4.48.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
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 $2.48 billion, up 8.6% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 20.2% since reporting. It currently trades at $14.82.
Is now the time to buy Cushman & Wakefield? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.31 billion, up 1.1% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 5.9% since the results and currently trades at $10.20.
Read our full analysis of eXp World’s results here.
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 $9.75 billion, up 16.2% year on year. This number beat analysts’ expectations by 4.3%. It was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
The stock is up 8.5% since reporting and currently trades at $159.12.
Read our full, actionable report on CBRE here, it’s free.
Newmark (NASDAQ: NMRK)
Founded in 1929, Newmark (NASDAQ: NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.
Newmark reported revenues of $759.1 million, up 19.9% year on year. This print topped analysts’ expectations by 10.7%. Overall, it was a very strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Newmark achieved the highest full-year guidance raise among its peers. The stock is up 18.6% since reporting and currently trades at $17.16.
Read our full, actionable report on Newmark here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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