As the Q3 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 JLL (NYSE:JLL) 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was 0.6% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.9% since the latest earnings results.
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 $6.51 billion, up 10.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.
"JLL achieved strong top and bottom-line results as well as impressive free cash flow generation in the third quarter, led by an acceleration in transactional revenue and ongoing momentum in our resilient businesses. The strength of JLL's diversified platform is reflected in our eight consecutive quarters of double-digit Adjusted EPS growth," said Christian Ulbrich, JLL CEO.
Interestingly, the stock is up 9.5% since reporting and currently trades at $327.43.
Is now the time to buy JLL? Access our full analysis of the earnings results here, it’s free.
Best Q3: Howard Hughes Holdings (NYSE:HHH)
Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.
Howard Hughes Holdings reported revenues of $390.2 million, up 19.3% year on year, outperforming analysts’ expectations by 15.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Howard Hughes Holdings achieved the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $79.51.
Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $132.7 million, down 36.2% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 63.9% since the results and currently trades at $0.83.
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 $863.5 million, up 25.9% year on year. This print surpassed analysts’ expectations by 11.8%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.
The stock is down 13.1% since reporting and currently trades at $16.18.
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 $2.61 billion, up 11.2% year on year. This number beat analysts’ expectations by 7.9%. It was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The stock is down 9% since reporting and currently trades at $15.04.
Read our full, actionable report on Cushman & Wakefield here, it’s free.
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