Stock Story -
What Happened: Shares of real estate franchise company RE/MAX (NYSE:RMAX) jumped 15.2% in the morning session after the company reported second quarter earnings results. RE/MAX exceeded analysts' EPS expectations. The company also maintained its full year revenue guidance, which is comforting. Zooming out, we think this was a fine quarter featuring some areas of strength.
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What is the market telling us: RE/MAX's shares are somewhat volatile and over the last year have had 44 moves greater than 5%. But moves this big are very rare even for RE/MAX and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock gained 15.1% on the news that the company reported first-quarter results that topped analysts' revenue expectations. Its EPS also narrowly outperformed Wall Street's estimates. That the company reaffirmed full year revenue and adjusted EBITDA guidance means the company is on track.
On the other hand, its operating margin missed, and its number of agents fell short of Wall Street's estimates. Overall, this was a decent quarter for RE/MAX.
RE/MAX is down 27.5% since the beginning of the year, and at $9.16 per share it is trading 52.3% below its 52-week high of $19.19 from August 2023. Investors who bought $1,000 worth of RE/MAX's shares 5 years ago would now be looking at an investment worth $341.03.
![RE/MAX (RMAX) Shares Skyrocket, What You Need To Know](https://d68-invdn-com.investing.com/content/pic5d6163df653ad0a0b3e56d8dabec8143.jpeg)