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Winners And Losers Of Q1: Compass (NYSE:COMP) Vs The Rest Of The Real Estate Services Stocks


Max Juang /
2024/07/03 5:15 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Compass (NYSE:COMP) and the rest of the real estate services stocks fared in Q1.

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. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance 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 4.5% on average since the previous earnings results.

Compass (NYSE:COMP)

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Compass reported revenues of $1.05 billion, up 10.1% year on year, topping analysts' expectations by 2.2%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates.

Compass Total Revenue

The stock is up 7.6% since the results and currently trades at $3.53.

Read our full report on Compass 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 9.8% since the results and currently trades at $203.48.

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 38.7% since the results and currently trades at $3.32.

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

RE/MAX (NYSE:RMAX)

Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories.

RE/MAX reported revenues of $78.29 million, down 8.3% year on year, surpassing analysts' expectations by 1.3%. It was a slower quarter for the company, with a miss of analysts' agents estimates.

RE/MAX achieved the highest full-year guidance raise among its peers. The stock is up 13.5% since the results and currently trades at $8.14.

Read our full, actionable report on RE/MAX here, it's free.

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' earnings estimates.

The stock is down 8.1% since the results and currently trades at $30.66.

Read our full, actionable report on Marcus & Millichap here, it's free.

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