508523

A Look Back at Real Estate Services Stocks' Q1 Earnings: eXp World (NASDAQ:EXPI) Vs The Rest Of The Pack


Max Juang /
2024/07/04 7:47 am EDT

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the real estate services industry, including eXp World (NASDAQ:EXPI) 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 Q1; on average, revenues beat analyst consensus estimates by 4.2%. while next quarter's revenue guidance was 4% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the real estate services stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.1% on average since the previous earnings results.

eXp World (NASDAQ:EXPI)

Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.

eXp World reported revenues of $943.1 million, up 10.9% year on year, topping analysts' expectations by 5.6%. It was a weaker quarter for the company, with a miss of analysts' agents and brokers estimates.

eXp World Total Revenue

The stock is up 5.6% since the results and currently trades at $10.5.

Read our full report on eXp World here, it's free.

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' earnings estimates.

JLL Total Revenue

The stock is up 11.5% since the results and currently trades at $206.59.

Is now the time to buy JLL? Access our full analysis of the earnings results here, it's free.

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, with a miss of analysts' earnings estimates and a miss of analysts' Franchise revenue estimates.

Anywhere Real Estate had the weakest performance against analyst estimates in the group. The stock is down 39.5% since the results and currently trades at $3.28.

Read our full analysis of Anywhere Real Estate's results here.

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 an ok quarter for the company, with a narrow beat of analysts' earnings estimates but a miss of analysts' homes sold estimates.

Opendoor had the slowest revenue growth among its peers. The stock is down 9.9% since the results and currently trades at $1.82.

Read our full, actionable report on Opendoor here, it's free.

Zillow (NASDAQ:ZG)

Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.

Zillow reported revenues of $529 million, up 12.8% year on year, surpassing analysts' expectations by 4.1%. It was a weaker quarter for the company, with a miss of analysts' monthly active users estimates.

The stock is up 7.1% since the results and currently trades at $44.34.

Read our full, actionable report on Zillow here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.