Let’s dig into the relative performance of eXp World (NASDAQ:EXPI) and its peers as we unravel the now-completed Q3 real estate services earnings season.
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 14 real estate services stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 7.8% below.
In light of this news, share prices of the companies have held steady as they are up 1.8% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $13.73.
Read our full report on eXp World 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 and EBITDA estimates.
The Real Brokerage delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.6% since reporting. It currently trades at $5.21.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: Anywhere Real Estate (NYSE:HOUS)
Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.
Anywhere Real Estate reported revenues of $1.54 billion, down 3.1% year on year, falling short of analysts’ expectations by 5.7%. It was a disappointing quarter as it posted a miss of analysts’ transacted dollars and adjusted operating income estimates.
Anywhere Real Estate delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.2% since the results and currently trades at $3.95.
Read our full analysis of Anywhere Real Estate’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 $9.04 billion, up 14.8% year on year. This result beat analysts’ expectations by 2.7%. It was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ Investment Management revenue estimates.
The stock is up 8.4% since reporting and currently trades at $133.49.
Read our full, actionable report on CBRE 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 $1.38 billion, up 40.5% year on year. This number topped analysts’ expectations by 8.3%. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates.
Opendoor pulled off the biggest analyst estimates beat among its peers. The stock is down 7.4% since reporting and currently trades at $1.74.
Read our full, actionable report on Opendoor here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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