Q4 Earnings Highlights: Newmark (NASDAQ:NMRK) Vs The Rest Of The Real Estate Services Stocks
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 Newmark (NASDAQ:NMRK) 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 13 real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 5.3% while next quarter’s revenue guidance was 1.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.3% since the latest earnings results.
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 $872.7 million, up 16.8% year on year. This print exceeded analysts’ expectations by 10.4%. It was a decent quarter for the company with an impressive beat of analysts’ EBITDA estimate.
Newmark Total Revenue
Newmark pulled off the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 6.8% since reporting and currently trades at $10.43.
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $350.6 million, up 93.4% year on year, outperforming analysts’ expectations by 16.8%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The Real Brokerage Total Revenue
The Real Brokerage pulled off the fastest revenue growth among its peers. The market seems unhappy with the results as the stock is down 6.8% since reporting. It currently trades at $4.62.
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 $174.3 million, down 27.5% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 30.9% since the results and currently trades at $1.50.
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.
Zillow reported revenues of $554 million, up 16.9% year on year. This result beat analysts’ expectations by 1.1%. More broadly, it was a decent quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.
The stock is down 24.3% since reporting and currently trades at $63.48.
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Opendoor reported revenues of $1.08 billion, up 24.6% year on year. This number topped analysts’ expectations by 10.8%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates.
The stock is down 35.6% since reporting and currently trades at $0.93.
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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