Reflecting On Real Estate Services Stocks' Q1 Earnings: RE/MAX (NYSE:RMAX)
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 RE/MAX (NYSE:RMAX) and the rest of the real estate services stocks fared in Q1.
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 strong Q1. As a group, revenues beat analysts' consensus estimates by 2% while next quarter's revenue guidance was 0.8% below.
While some real estate services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results.
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 $74.47 million, down 4.9% year on year. This print exceeded analysts' expectations by 1.3%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts' EPS estimates but EBITDA guidance for next quarter missing analysts' expectations.
"For the fourth consecutive quarter, our company delivered solid profit and margin performance," said Erik Carlson, RE/MAX Holdings Chief Executive Officer.
RE/MAX pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $7.75.
Is now the time to buy RE/MAX? Access our full analysis of the earnings results here, it's free.
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 $354 million, up 76.3% year on year, outperforming analysts' expectations by 6.3%. The business had a stunning quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates.
The Real Brokerage achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.6% since reporting. It currently trades at $4.12.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it's free.
Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $954.9 million, up 1.3% year on year, falling short of analysts' expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates.
As expected, the stock is down 1.7% since the results and currently trades at $8.52.
Read our full analysis of eXp World's results here.
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 $5.75 billion, up 12.1% year on year. This result topped analysts' expectations by 4.1%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts' EBITDA estimates.
The stock is down 3% since reporting and currently trades at $222.70.
Read our full, actionable report on JLL here, it's free.
Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform.
Redfin reported revenues of $221 million, down 2% year on year. This number met analysts' expectations. Overall, it was a strong quarter as it also logged an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates.
The stock is up 13.2% since reporting and currently trades at $10.
Read our full, actionable report on Redfin here, it's free.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Wall Street on Edge: Inflation Spike, $58B Debt Test, and Trade Turmoil Collide
Wall Street is holding its breath as two market-moving forces line up: inflation and debt. Investors are watching closely as the U.S. and China restart trade talks in London, aiming to ease tensions and avoid another round of tariff escalations. Meanwhile, a $58 billion Treasury auction could test demand for U.S. debt at a time when long-end yields hover near 5%a level many thought would spark broader market reactions. BMO's Ian Lyngen calls this week's combo of May CPI and Treasury supply a tradable event, with core inflation expected to accelerate to 2.9% year-over-yearthe first uptick of the year. The S&P 500 (SPY) sits roughly 2% from its February peak, but volatility could return fast depending on how these numbers land. Warning! GuruFocus has detected 5 Warning Sign with META. Despite the rebound from April's tariff-driven slide, institutional investors have yet to jump back into equities in full force. Deutsche Bank notes that institutional positioning has been this low less than a quarter of the time since 2010. JPMorgan and Barclays, however, suggest the tide could be turning, with more big money managers set to ramp up equity exposure. That shift hasn't shown up yetBank of America's clients were net sellers last week, with institutions pulling out while hedge funds and retail buyers stepped in. Strategist Jill Carey Hall thinks the market may have already priced in much of the deglobalization risk, but not the potential upside from underappreciated tax policy tailwinds. On the corporate front, action is heating up. Tesla (NASDAQ:TSLA) isn't grabbing headlines today, but its peers are moving fast. Meta's (NASDAQ:META) CEO Mark Zuckerberg is going all-in on artificial general intelligence, quietly assembling a powerhouse team to build out the next big wave in AI. Boeing (NYSE:BA) just secured its biggest monthly order tally in over a yearmuch of it inked during President Trump's trip to the Middle East. Cisco (NASDAQ:CSCO) is rolling out new AI-powered upgrades across its networking portfolio to stay competitive in the enterprise race. Taiwan Semiconductor (NYSE:TSM) posted a 40% revenue surge in May as chipmakers rushed to build inventory ahead of potential trade roadblocks. Not everything was rosyMcDonald's (NYSE:MCD) was slapped with a rare sell rating from Redburn Atlantic, and Citigroup (NYSE:C) is preparing to book hundreds of millions more in loan loss provisions, signaling early cracks in consumer credit health. This article first appeared on GuruFocus.
Yahoo
11 minutes ago
- Yahoo
TSMC (TSM) Reports 40% Revenue Surge in May as AI Chip Demand Booms
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the 1. On June 10, the company reported its May revenue, which surged 40% year-over-year to NT$320.5 billion ($10.7 billion) as demand remained high for its AI chips. The contract chipmaker, which supplies to tech giants such as Apple and Nvidia, had its revenue up 39.6% from a year earlier but down 8% from April's figure. According to TSMC's CEO C.C. Wei, April softening was seasonal, and the company is ramping advanced nodes to ease bottlenecks. Its capacity expansions in Arizona and Taiwan are progressing according to plan. Moreover, new EUV tools and packaging lines are launching to boost throughput for the latest H100 and next-gen Gaudi GPUs. A macro view of a 5G/4G chips and modules, displaying the cutting edge technology of the company. Back in March, Wei joined President Donald Trump in announcing his intent to invest $100 billion in U.S.-based chip-manufacturing facilities. He acknowledged TSMC's projection of 'full-year 2025 revenue to increase by close to mid-20s percent in U.S. dollar terms' in the company's first-quarter earnings call in April. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells advanced chips used in artificial intelligence applications. While we acknowledge the potential of TSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. 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
Yahoo
11 minutes ago
- Yahoo
QUALCOMM (QCOM) to Acquire Alphawave for $2.4 Billion in Data Center Expansion Push
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks on Wall Street's Radar. On June 9, the company reported that it has agreed to buy semiconductor company Alphawave IP Group Plc for an estimated $2.4 billion in cash, aiming to expand its technology and key assets for expanding into data centers. The companies revealed in a Monday statement that the offer is equivalent to about 183 pence per share for Alphawave, a 96% premium to the company's share price on March 31. This was the last trading day prior to the companies disclosing the deal discussion. While the deal is subject to regulatory and shareholder approval, it is anticipated to close in the first quarter of 2026. A medical staff analyzing data in an occupational health center. 'The acquisition of Alphawave Semi aims to further accelerate and provide key assets for Qualcomm's expansion into data centers,' the company said. While Qualcomm has made two alternative all-share offers for Alphawave following multiple deadline extensions from the UK takeover panel, Alphawave plans to unanimously recommend the cash offer to its shareholders. They deem it to be fair and reasonable. 'Under Tony's leadership Alphawave Semi has developed leading high-speed wired connectivity and compute technologies that are complementary to our power-efficient CPU and NPU cores. Qualcomm's advanced custom processors are a natural fit for data center workloads. The combined teams share the goal of building advanced technology solutions and enabling next-level connected computing performance across a wide array of high growth areas, including data center infrastructure.' – Cristiano Amon, president and CEO of Qualcomm Incorporated. QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT devices, licenses patents, and invests in emerging industries worldwide. While we acknowledge the potential of QCOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
