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 Marcus & Millichap (NYSE:MMI) and the rest of the real estate services stocks fared in Q4.
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 weaker Q4; on average, revenues beat analyst consensus estimates by 1.7%. while next quarter's revenue guidance was 21.1% 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. The beginning of 2024 saw mixed inflation data, however, leading to more volatile stock performance, and real estate services stocks have had a rough stretch, with share prices down 14.5% on average since the previous 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 $166.2 million, down 36.7% year on year, falling short of analyst expectations by 2.9%. It was a weaker quarter for the company, with a miss of analysts' revenue estimates.
The stock is down 19% since the results and currently trades at $32.35.
Read our full report on Marcus & Millichap here, it's free.
Best Q4: CBRE (NYSE:CBRE)
Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.
CBRE reported revenues of $8.95 billion, up 9.2% year on year, outperforming analyst expectations by 6%. It was an impressive quarter for the company, with a solid beat of analysts' revenue and EPS estimates.
The stock is up 2.8% since the results and currently trades at $89.39.
Is now the time to buy CBRE? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $240.5 million, down 64.5% year on year, falling short of analyst expectations by 4.7%. It was a weak quarter for the company, with a miss of analysts' homes sold estimates and revenue guidance for next quarter missing analysts' expectations.
Offerpad had the weakest performance against analyst estimates in the group. The stock is down 20.5% since the results and currently trades at $7.31.
Read our full analysis of Offerpad's results here.
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 $747.4 million, up 23.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. Newmark's 2024 guidance, however, was quite bullish as it expects industry volumes to accelerate in the second half of the year, leading to anticipated earnings outperformance.
The stock is down 7.8% since the results and currently trades at $9.59.
Read our full, actionable report on Newmark here, it's free.
Cushman & Wakefield (NYSE:CWK)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Cushman & Wakefield reported revenues of $2.55 billion, down 3.6% year on year, surpassing analyst expectations by 4.9%. It was a mixed quarter for the company, with revenue and EPS exceeding expectations. That was driven by strong outperformance in its Leasing segment, which posted revenue of $587 million (5% year-on-year growth) versus Wall Street consensus estimates of $509 million. On the other hand, its operating margin missed and its Capital Markets segment continued its slump (Capital Markets revenue shrunk 31% year on year this quarter).
The stock is down 16.8% since the results and currently trades at $9.27.
Read our full, actionable report on Cushman & Wakefield here, it's free.
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