logo
Anywhere rode luxury to close out 2024's 'challenged' market

Anywhere rode luxury to close out 2024's 'challenged' market

Yahoo13-02-2025

After a sluggish third quarter, Anywhere waded through a 'pretty tough housing market' to deliver some growth and an optimistic outlook for 2025.
The real estate services company posted a net loss of $64 million, or a $43 million improvement from the same quarter in 2023. But it's full-year performance worsened to a net loss of $128 million, compared with $97 million for 2023.
Its operating EBITDA — earnings before interest, taxes, depreciation and amortization — of $52 million was up $24 million year-over-year.
The parent company of Corcoran, Coldwell Banker, Century 21 and Sotheby's International Realty reported $1.4 billion in revenue, a 9 percent annual increase.
Gross transaction volume was up 13 percent year-over-year, with units closed in the fourth quarter up 3 percent and prices up 9 percent.
Anywhere was buoyed by growth in its luxury sector. The high-end segments posted gross volume that was up 20 percent compared to the fourth quarter of 2023, driven by 12 percent unit growth year-over-year.
On the earnings call, CEO Ryan Schneider reiterated his stance for relaxing — but not repealing — the National Association of Realtors' Clear Cooperation Policy. The chief executive appeared to take a veiled shot at fellow residential giant Compass, which has been on the vanguard of pushing for a repeal.
'Those advocating for full repeal are primarily advancing their own interests,' Schneider said. 'There's clearly an opportunity for players with listing scale to create private, off-market listing networks that only select agents can access, which clearly could enhance near-term economics.'
A shift to off-market listings hurts sellers' ability to get the best price, Schneider said, and complicates pricing by decreasing publicly available comparables. But he noted that Anywhere, which he said has the most listings in the industry across its brands, is prepared to 'capitalize' in the event of a CCP repeal.
He also called out industry consolidation — another point of emphasis for Compass — and said that while he would be 'excited to augment our growth through M&A opportunities,' the company will only be looking for 'deals that enhance the bottom line, not just the top line.'
'We've seen some deals in the market that we wouldn't do,' he said, noting that Anywhere would likely be a cash — as opposed to equity — buyer if it does find an acquisition opportunity.
Cost cuts to continue
Anywhere's commission splits again stayed steady, down 7 basis points year-over-year to 80.3 percent.
Average commission rates again fell slightly, to 2.39 percent from 2.41 percent for its franchise groups and to 2.35 from 2.36 for its owned brokerage groups.
Over 80 percent of buyers have opted to sign six-month exclusive buyer agreements, which were one of five agreements Anywhere rolled out in the wake of NAR practice changes going into effect last summer.
Anywhere's yearslong cost-cutting mission resulted in a realized cost savings of $125 million for 2024. CFO Charlotte Simonelli said that 40 percent of those savings were offset by growth-related costs and inflation.
Anywhere's free cash flow for the year was $70 million — roughly even with 2023 — after excluding a $20 million litigation settlement payment, and the company expects a similar performance in 2025.
The firm has also targeted another $100 million of cost reductions for 2025, and it continues to tout its use of artificial intelligence tools to improve efficiency. Schneider said the firm has used generative AI to halve the team needed to process over 50,000 transaction-related documents per day.
Anywhere expects to bolster its performance in 2025, forecasting $350 million of operating EBITDA for the year, an increase of $60 million from 2024.
But Simonelli said the housing market will be 'the single biggest swing factor' for its projections, noting that there are currently 'some pretty wide ranges in industry forecasts.'
This January has shown early signs of growth, with the closed gross volume up 12 percent year-over-year and the open volume — open contracts and future closings — up 4 percent year-over-year.
'The housing market remains challenged, especially with a lack of supply and real pressure on the number of unit transactions,' Schneider said.
Anywhere claims 'first mover' advantage ahead of NAR deadline
Here's where Compass, Anywhere stand after year of cost-cutting
Anywhere strikes buyer commission, NAR membership rules in proposed settlement
This article originally appeared on The Real Deal. Click here to read the full story.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

CODI INVESTOR ALERT: Kirby McInerney LLP Notifies Compass Group Diversified Holdings, LLC Investors of Upcoming Lead Plaintiff Deadline in Class Action Lawsuit
CODI INVESTOR ALERT: Kirby McInerney LLP Notifies Compass Group Diversified Holdings, LLC Investors of Upcoming Lead Plaintiff Deadline in Class Action Lawsuit

Business Upturn

time3 hours ago

  • Business Upturn

CODI INVESTOR ALERT: Kirby McInerney LLP Notifies Compass Group Diversified Holdings, LLC Investors of Upcoming Lead Plaintiff Deadline in Class Action Lawsuit

NEW YORK, June 11, 2025 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors of the July 8, 2025, deadline to seek the role of lead plaintiff in a federal securities class action filed on behalf of investors who acquired Compass Group Diversified Holdings, LLC ('Compass' or the 'Company') (NYSE:CODI) securities during the period from May 1, 2024, through May 7, 2025 ('the Class Period'). [LEARN MORE ABOUT THE CLASS ACTION] On May 7, 2025, after the market closed, Compass issued an 8-K and attached press release titled 'Compass Diversified Discloses Non-Reliance on Financial Statements for Fiscal 2024 Amid an Ongoing Internal Investigation into its subsidiary, Lugano Holdings, Inc.' In this release, Compass announced that it 'has preliminarily identified irregularities in Lugano's non-CODI financing, accounting, and inventory practices. After discussing with senior leadership and investigators, the Audit Committee of CODI's Board has concluded that the previously issued financial statements for 2024 require restatement and should no longer be relied upon.' The release also announced that Compass intended to delay the filing of its first quarter 2025 Form 10-Q. On this news, the price of Compass shares declined by $10.70 per share, or approximately 62%, from $17.25 per share on May 7, 2025, to close at $6.55 on May 8, 2025. The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) the Company's subsidiary, Lugano Holdings, Inc., maintained unrecorded financing arrangements and irregularities in its sales, cost of sales, inventory, and accounts receivable; (2) the irregularities and undisclosed details in Lugano Holdings, Inc.'s financial statements rendered the financial statements of the Company as a whole unreliable, and would require restatement; and (3) the Company failed to maintain adequate internal controls related to its financial statements. If you purchased or otherwise acquired Compass securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you. [CONTACT FORM] Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. ContactsKirby McInerney LLPThomas W. Elrod, Esq.212-699-1180https:// [email protected]

Why Barbara Corcoran Says Now Might Be the Best Time To Buy a House
Why Barbara Corcoran Says Now Might Be the Best Time To Buy a House

Yahoo

time4 hours ago

  • Yahoo

Why Barbara Corcoran Says Now Might Be the Best Time To Buy a House

Once you navigate through the housing market, mortgage rates and competition among buyers, you may be left with a feeling of uncertainty. However, 'Shark Tank' host, money expert and all-around real estate guru Barbara Corcoran says if you're looking to purchase a home, you should do it now. Learn More: Find Out: Last year, interest rates for real estate hit a 23-year high. The real estate mogul said in an Instagram Reel that this news is pushing more buyers to the sidelines in an attempt to wait it out. Here's why buyers should be brave and prioritize buying a house now. Corcoran stressed that what makes now the best time to buy a house is that 'everyone is scared.' Though it sounds bad, this could be good news for buyers as it affects everything from existing home sales to supply and demand to even determining the best time of year to fork over a down payment. A much more frightening aspect for buyers out of the market to consider is what the market might look like if interest rates do drop again. While Corcoran said the days of 2% to 3% interest rates are effectively gone, she also added that interest rates will come down. 'The minute [interest rates] drop and come to anything with a five in front of it, the whole world is going to jump back into the market,' said Corcoran. Lower interest rates, however, present a few issues when buying a home. The first is that there will be no houses available to buy, and the second is that home prices will go up as soon as they hit the market, with Corcoran predicting a 10% or 15% price increase. As of June 2025, current mortgage rates are generally in the 6% to 7% range for 30-year fixed-rate mortgages, averaging about 6.81%. If you don't take Corcoran's word for it you could also factor in that in the early months of 2025, mortgage rates dropped, which can create a little more relief and wiggle room in your housing budget. Despite that fact, the housing market is less than booming thanks to other economic uncertainties like tariffs, global trade, pending resurgence of inflation, rumors of recession and the stock market's performance moving forward. Read Next: For buyers who are brave enough to be in the current real estate market, Corcoran recommends following these three tips. This doesn't have to be your forever home. The home you buy now can be traded up later, according to Corcoran. Your budget won't go as far as it used to. Instead of looking at the added cost of a house or a mortgage, Corcoran said to figure out how much the mortgage payment is and to ask yourself if you can afford that. Don't forget to shop for the best possible rate. 'People don't do this,' said Cororan, adding you can start by reaching out to your bank to see if they have any special customer discounts. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on Why Barbara Corcoran Says Now Might Be the Best Time To Buy a House Sign in to access your portfolio

Intermodal carriers getting ‘a bit more optimistic'
Intermodal carriers getting ‘a bit more optimistic'

Yahoo

time13 hours ago

  • Yahoo

Intermodal carriers getting ‘a bit more optimistic'

Intermodal carriers sounded a little more upbeat than they were just a few weeks ago at an investor conference held in Chicago on Tuesday. Management from Schneider National (NYSE: SNDR) said its 'feeling a bit more optimistic' than it was on its first-quarter call held on May 1. The multimodal provider said at the 2025 Wells Fargo Industrials & Materials Conference on Tuesday that the worst-case scenarios previously contemplated at the onset of the trade war now appear unlikely. Schneider's President and CEO Mark Rourke pointed to a return to seasonal demand from some customers but classified trends as still 'not completely normal.' He said volume weakness on the West Coast (as imports from China remain in flux) is being offset by strength on intermodal lanes out of Mexico and in the Midwest. He believes an inventory pull-forward before the conclusion of the 90-day tariff pause between the U.S. And China is likely. Some of Schneider's customers are expecting 'a tsunami' of freight while others are calling for steady shipment company said demand for its single-line intermodal service from Mexico to Chicago on the Canadian Pacific Kansas City (NYSE: CP) line will allow it to outgrow the rest of the industry. It expects new business wins along that lane and throughout the rest of its network to offset any tariff-induced air pocket in demand. Schneider's intermodal contact pricing has largely been flat to up slightly so far this bid season, and it is having constructive conversations with customers who are showing more interest in the mode as they expect the truckload market to eventually tighten. Management from J.B. Hunt Transport Services (NASDAQ: JBHT) said the headlines have been exaggerated and that intermodal demand has been relatively stable. It is looking for 'an ok peak [season]' blended with 'a little bit of optimism on the supply side.' 'Generally, business has been way more stable than what I think concern has been from the market,' said Brad Delco, senior vice president of finance at J.B. Hunt, at the event.J.B. Hunt, too, said that intermodal bid season is producing flat to slightly higher pricing, noting strength on head haul lanes. Schneider's intermodal revenue per load was 1% higher year over year in the first quarter (excluding fuel surcharges) while J.B. Hunt recorded a 1% decline. J.B. Hunt saw 13% volume growth in the East, which has a shorter length of haul and negatively impacted the yield metric, during the period. It remains encouraged by recent growth trends in the business given the absence of the normal demand catalysts for modal conversion like fuel cost pressures and rising TL rates. The company remains focused on improving balance throughout its network and growing both volumes and yields. Schneider said the TL market is getting closer to equilibrium. It pointed to meaningful inflections in data points (tender rejections and spot rates) during one-off events (Roadcheck and the produce shipping season) as signs. Some of Schneider's customers are also engaging in 'scenario planning' in case the market tightens. Nick Hobbs, J.B. Hunt's chief operating officer and president of highway and final mile services, voiced 'maybe a little bit of optimism' on the freight market. He said demand is decent and that truck capacity is still exiting. He also pointed to the recent sensitivity in spot rates as capacity moved to Florida to cover the produce season. 'Things have been very steady for us … that's a positive because things have been anything but steady in the prior two to three years,' said Brad Hicks, executive vice president and president of dedicated contract services at J.B. Hunt. He said the dedicated unit is still winning new business and that a stretch of account churn is ending. He expects net fleet growth in the second half of this year.J.B. Hunt's dedicated contacts are garnering price increases around 3.5%, which is still a little lower than what it has experienced during better parts of the cycle. 'Equilibrium is getting real close. I think that there's fragileness in the supply chain and the supply side. Any little lift will start to be felt,' Hicks said. Schneider is seeing low- to mid-single-digit y/y price increases on its one-way TL contracts this bid season. It reiterated the expectation that pricing in the unit will be higher y/y in 2025. The impact the rate increases will have on margins remains to be seen as the industry is still struggling to recoup years of cost inflation. 'We've maintained our discipline relative to getting to contractual improvement,' Rourke said. He said Schneider has been willing to place one-way equipment into the spot market on certain lanes when it can't get the desired contract pricing. The stickiness of the recent rate increases remains to be seen, but so far it has been especially good with big shippers utilizing large trailer pools. Unlike most in the industry, Schneider's combined TL fleet, which includes dedicated, reported 130 basis points of y/y margin improvement in the first quarter. The 95.9% operating ratio (inverse of operating margin), however, remained depressed by historical standards. The company has targeted more than $40 million in potential cost reductions from tractor utilization and other initiatives. It hinted Tuesday that total savings could move higher as it has a history of achieving and raising targets. Gains from equipment sales, which are recorded as offsets to operating expenses on the income statement, could be a tailwind as tariffs increase the price of new trucks, lifting the value of used equipment. Schneider stopped short of raising its full-year 2025 adjusted earnings-per-share guidance, which it cut by 17% to a range of 75 cents to $1 on the first-quarter call. However, it said it could narrow the range, presumably higher at the midpoint, depending on how the second quarter closes. Shares of SNDR were up 2.4% on Tuesday while shares of JBHT were up 2.5%. The S&P 500 was up 0.6%. More FreightWaves articles by Todd Maiden: Dynamic pricing, easy comps end 22-month tonnage downturn at ArcBest Saia's tonnage turns negative after 22-month run XPO sees modest tonnage decline in May The post Intermodal carriers getting 'a bit more optimistic' appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store