Let's dig into the relative performance of CBRE (NYSE:CBRE) and its peers as we unravel the now-completed Q1 real estate services earnings season.
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The 14 real estate services stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.2%. while next quarter's revenue guidance was 4% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the real estate services stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.6% on average since the previous 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 $7.94 billion, up 7.1% year on year, falling short of analysts' expectations by 0.2%. It was a weak quarter for the company, with a miss of analysts' earnings and operating margin estimates.
The stock is up 2.6% since the results and currently trades at $89.11.
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Best Q1: 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 $5.12 billion, up 8.7% year on year, outperforming analysts' expectations by 6.4%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue, earnings and operating margin estimates.
The stock is up 10.3% since the results and currently trades at $204.46.
Weakest Q1: 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 $1.13 billion, down 0.4% year on year, falling short of analysts' expectations by 1.8%. It was a weak quarter for the company: Anywhere Real Estate missed analysts' revenue, EBITDA, and EPS estimates this quarter as its housing unit sales were down 4% year on year.
Anywhere Real Estate had the weakest performance against analyst estimates in the group. The stock is down 40% since the results and currently trades at $3.25.
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 $1.18 billion, down 62.1% year on year, surpassing analysts' expectations by 8.8%. It was a solid quarter for the company, with an impressive beat of analysts' revenue and EPS estimates.
Opendoor had the slowest revenue growth among its peers. The stock is down 8.4% since the results and currently trades at $1.85.
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 $129.1 million, down 16.6% year on year, surpassing analysts' expectations by 1.3%. It was a solid quarter for the company, with a decent beat of analysts' operating margin and earnings estimates.
The stock is down 5.8% since the results and currently trades at $31.42.
