Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at CBRE (NYSE:CBRE) and the best and worst performers in the real estate services industry.
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 slower Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 13.1% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. However, real estate services stocks have held steady amidst all this with average share prices relatively unchanged 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 $8.39 billion, up 8.7% year on year. This print was in line with analysts’ expectations, but overall, it was a weak quarter for the company with a miss of analysts’ earnings estimates.
Interestingly, the stock is up 13.6% since reporting and currently trades at $111.73.
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Best Q2: JLL (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. It performed better than its peers, but it was unfortunately a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ Work Dynamics revenue estimates.
The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $244.55.
Weakest Q2: 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 $1.67 billion, flat year on year, falling short of analysts’ expectations by 1.3%. It was a weak quarter for the company with a miss of analysts’ earnings and Franchise revenue estimates.
As expected, the stock is down 6.8% since the results and currently trades at $4.39.
Zillow (NASDAQ:Z) (NASDAQ:ZG) Founded by Expedia (NASDAQ:EXPE) co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.
Zillow reported revenues of $572 million, up 13% year on year, surpassing analysts’ expectations by 6.3%. More broadly, it was a weaker quarter for the company with a miss of analysts’ earnings and monthly active users estimates.
The stock is up 27.2% since reporting and currently trades at $51.32.
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 $633.4 million, up 8.1% year on year, in line with analysts’ expectations. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ earnings estimates.
The stock is down 2.3% since reporting and currently trades at $12.45.
This content was originally published on Stock Story
