Real estate franchise company RE/MAX (NYSE:RMAX) will be announcing earnings results this Thursday after market close. Here’s what to look for.
RE/MAX missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $73.25 million, down 6.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates. It reported 147,547 agents, up 1.4% year on year.
Is RE/MAX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting RE/MAX’s revenue to decline 1.4% year on year to $71.42 million, improving from the 5.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RE/MAX has missed Wall Street’s revenue estimates four times over the last two years.
Looking at RE/MAX’s peers in the consumer discretionary - real estate services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Marcus & Millichap delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 6.3%, and Zillow reported revenues up 18.1%, topping estimates by 0.5%. Marcus & Millichap traded up 3.4% following the results while Zillow was down 17.1%.
Read our full analysis of Marcus & Millichap’s results here and Zillow’s results here.
Investors in the consumer discretionary - real estate services segment have had steady hands going into earnings, with share prices flat over the last month. RE/MAX is down 11.5% during the same time and is heading into earnings with an average analyst price target of $9 (compared to the current share price of $6.91).
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