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Spotting Winners: RE/MAX (NYSE:RMAX) And Real Estate Services Stocks In Q1


Anthony Lee /
2024/07/05 6:29 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at RE/MAX (NYSE:RMAX) 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, 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.

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, topping analysts' expectations by 1.3%. It was a mixed quarter for the company, with a narrow beat of analysts' earnings estimates but a miss of analysts' agents estimates.

"Effective cost management led to solid first-quarter margin performance, as we continue to operate our business as efficiently as possible amidst an environment of uncertainty," said Erik Carlson, RE/MAX Holdings Chief Executive Officer.

RE/MAX Total Revenue

RE/MAX scored the highest full-year guidance raise of the whole group. The stock is up 12.7% since the results and currently trades at $8.08.

Read our full report on RE/MAX 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 and a decent beat of analysts' Capital Markets revenue 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.

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 $546.5 million, up 4.9% year on year, surpassing analysts' expectations by 3.9%. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming earnings guidance for the full year.

Newmark had the weakest full-year guidance update among its peers. The stock is up 3.3% since the results and currently trades at $10.3.

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

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 $285.4 million, down 53.2% year on year, surpassing analysts' expectations by 5.6%. It was a weaker quarter for the company, with revenue guidance for next quarter missing analysts' expectations.

The stock is down 41.7% since the results and currently trades at $4.29.

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

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