As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at real estate services stocks, starting with Cushman & Wakefield (NYSE:CWK).
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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 13.1% below.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. Luckily, real estate services stocks have performed well with share prices up 10.7% on average since the latest earnings results.
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 $2.29 billion, down 4.9% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a weak quarter for the company with a miss of analysts’ operating margin estimates and a miss of analysts’ revenue estimates.
“Our solid second quarter results, highlighted by our third consecutive quarter of leasing revenue growth and a meaningful improvement in free cash flow, are evidence of our execution against our strategic priorities,” said Michelle MacKay, Chief Executive Officer of Cushman & Wakefield.
Unsurprisingly, the stock is down 1.6% since reporting and currently trades at $13.10.
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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 $340.8 million, up 83.9% year on year, outperforming analysts’ expectations by 28.9%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
The Real Brokerage pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6.8% since reporting. It currently trades at $5.82.
Weakest Q2: 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 $251.1 million, up 9.1% year on year, falling short of analysts’ expectations by 11.4%. It was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations.
Offerpad had the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $3.89.
Redfin (NASDAQ:RDFN) Founded by a former medical school student, electrical engineer, and Amazon (NASDAQ:AMZN) data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform.
Redfin reported revenues of $295.2 million, up 7.1% year on year, surpassing analysts’ expectations by 1.2%. Revenue aside, it was a decent quarter for the company with an impressive beat of analysts’ operating margin estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is up 35.8% since reporting and currently trades at $9.57.
JLL (NYSE:NYSE:JLL) Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.
JLL reported revenues of $5.63 billion, up 11.4% year on year, in line with analysts’ expectations. Overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ Work Dynamics revenue estimates.
The stock is up 9.9% since reporting and currently trades at $255.23.
This content was originally published on Stock Story
