Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Marcus & Millichap (NYSE:MMI) 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 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 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. Luckily, real estate services stocks have performed well with share prices up 16.7% on average since the latest earnings results.
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 $158.4 million, down 2.8% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
Unsurprisingly, the stock is down 2.3% since reporting and currently trades at $37.58.
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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 delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $5.97.
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. As expected, the stock is down 13.6% since the results and currently trades at $3.37.
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 $1.51 billion, down 23.5% year on year, surpassing analysts’ expectations by 2.9%. Overall, it was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations.
Opendoor had the slowest revenue growth among its peers. The stock is up 11.8% since reporting and currently trades at $2.38.
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 decent quarter for the company with an impressive beat of analysts’ earnings estimates.
The stock is up 6% since reporting and currently trades at $13.50.
This content was originally published on Stock Story
