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Unpacking Q1 Earnings: Redfin (NASDAQ:RDFN) In The Context Of Other Real Estate Services Stocks


Petr Huřťák /
2024/05/22 9:20 am EDT

Looking back on real estate services stocks' Q1 earnings, we examine this quarter's best and worst performers, including Redfin (NASDAQ:RDFN) 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. 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, but real estate services stocks have shown resilience, with share prices up 8.8% on average since the previous earnings results.

Redfin (NASDAQ:RDFN)

Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform.

Redfin reported revenues of $225.5 million, up 5.3% year on year, topping analysts' expectations by 3.6%. It was a decent quarter for the company, with revenue guidance for next quarter exceeding analysts' expectations.

“Market conditions recently got worse, but Redfin got better in the first quarter of 2024,” said Redfin CEO Glenn Kelman.

Redfin Total Revenue

The stock is up 6.7% since the results and currently trades at $6.8.

Is now the time to buy Redfin? Access our full analysis of the earnings results 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 8% since the results and currently trades at $200.03.

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.

Anywhere Real Estate had the weakest performance against analyst estimates in the group. The stock is down 6.5% since the results and currently trades at $5.07.

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

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 4.2%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' earnings estimates.

The stock is up 0.7% since the results and currently trades at $41.69.

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

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 $200.7 million, up 86.1% year on year, surpassing analysts' expectations by 17.6%. It was a solid quarter for the company, with an impressive beat of analysts' revenue estimates.

The Real Brokerage delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 17.5% since the results and currently trades at $4.91.

Read our full, actionable report on The Real Brokerage here, it's free.

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