Latest news with #RMAX
Yahoo
02-06-2025
- Business
- Yahoo
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.
Yahoo
16-05-2025
- Business
- Yahoo
RMAX Q1 Earnings Call: Revenue Tops Expectations Amid New Agent Initiatives and Cost Controls
Real estate franchise company RE/MAX (NYSE:RMAX) announced better-than-expected revenue in Q1 CY2025, but sales fell by 4.9% year on year to $74.47 million. Revenue guidance for the full year exceeded analysts' estimates, but next quarter's guidance of $72.5 million was less impressive, coming in 1.9% below expectations. Its non-GAAP profit of $0.24 per share was 35.2% above analysts' consensus estimates. Is now the time to buy RMAX? Find out in our full research report (it's free). Revenue: $74.47 million vs analyst estimates of $73.53 million (4.9% year-on-year decline, 1.3% beat) Adjusted EPS: $0.24 vs analyst estimates of $0.18 (35.2% beat) Adjusted EBITDA: $19.29 million vs analyst estimates of $17.62 million (25.9% margin, 9.5% beat) The company reconfirmed its revenue guidance for the full year of $300 million at the midpoint EBITDA guidance for the full year is $95 million at the midpoint, in line with analyst expectations Operating Margin: 7.2%, up from 5.8% in the same quarter last year Free Cash Flow was -$1.16 million, down from $4.54 million in the same quarter last year Agents: 146,126, up 2,839 year on year Market Capitalization: $155.3 million RE/MAX's first quarter results reflected higher than anticipated margin and profit performance, with management crediting ongoing operational discipline and a strategic focus on cost control. CEO Erik Carlson emphasized investments in new agent education and marketing technology, noting that recent product rollouts—including refreshed branding and agent tools—are designed to enhance the company's value proposition and support long-term growth. CFO Karri Callahan highlighted the company's ability to deliver improved margins through disciplined expense management, despite a challenging real estate market. Looking ahead, RE/MAX's leadership maintained full-year revenue guidance above Wall Street expectations and expects agent-focused initiatives such as the Aspire onboarding program to help stabilize and eventually grow agent count. However, management acknowledged continued macroeconomic uncertainty, particularly in the U.S. housing and mortgage sectors, which may affect the pace of recovery. As Carlson explained, '2025 is a year of transition, continued building, innovation, evolution, and execution,' with an emphasis on expanding and modernizing the company's products and services. Management attributed the quarter's results to ongoing cost discipline and the rollout of several strategic initiatives targeting agent productivity and recruitment. These efforts aim to position RE/MAX for future growth, even as the broader real estate market remains pressured by macroeconomic challenges. Agent-Focused Initiatives: The launch of the Aspire onboarding program, combining education, technology, and financial incentives, is intended to attract and support new agents while reducing early attrition. Management described early adoption as better than expected, with the program viewed as a step toward greater model flexibility. Brand and Digital Refresh: A refreshed RE/MAX logo and balloon branding, alongside digital tools like MAX/Engage and AI-powered features, are being introduced to strengthen the brand's online presence and support agent marketing efforts. These updates seek to address shifting consumer behaviors and the growing importance of digital engagement in real estate transactions. International Agent Growth: RE/MAX reported notable agent count growth outside the U.S., especially in markets like South America and Portugal. Management attributed this to strong local operators and brand momentum, as well as tailored technology and marketing offerings for international affiliates. Operational Efficiencies: The company achieved margin improvements through ongoing expense reductions, especially in professional fees and personnel costs. Callahan noted that this cultural shift toward cost management has become ingrained over the last 12–18 months. Mortgage Segment Headwinds: The mortgage segment, including Motto and wemlo, continued to face challenges from a tough macro environment. However, recent franchise renewals and high event attendance were cited as signs of underlying resiliency, with management expecting gradual improvement as market conditions stabilize. Management's outlook for the year centers on leveraging new agent tools, disciplined expense management, and international expansion to offset ongoing macro headwinds in the U.S. housing market. Strategic investments in technology and agent support are expected to foster gradual improvement in agent count and profitability. Agent Recruitment and Retention: The Aspire program and related onboarding initiatives are seen as critical to stabilizing and eventually growing agent count, with management aiming to lower early-stage agent churn and enhance productivity. Digital and Brand Modernization: Continued investment in digital marketing tools and brand updates is expected to help agents compete more effectively, especially as more homebuyers begin their search online. International Expansion: Growth in agent count abroad remains a priority, supported by localized technology offerings and marketing platforms. Management believes international markets present meaningful long-term opportunities for both revenue and profitability. Anthony Paolone (JP Morgan): Asked about franchise sales declines and whether new initiatives might pressure this line. Management cited wind-down of legacy tech acquisitions and emphasized potential of new ancillary revenue streams like RE/MAX Media Network. Nick McAndrew (Zelman): Queried competitive positioning of Aspire and its ability to attract agents from cap-based models. CEO Carlson highlighted Aspire's flexibility and broader appeal to agents previously not considering RE/MAX. Stephen Sheldon (William Blair): Probed whether new initiatives could stabilize U.S. agent count. Management reported positive early adoption and noted April's agent count trends were the best since 2022. John Campbell (Stephens Inc.): Asked if margin gains could continue as revenue grows. CFO Callahan stressed a disciplined approach to reinvestment and a focus on purposeful, return-driven spending. Tommy McJoynt (KBW): Sought clarity on RE/MAX's U.S. agent market share and the company's position regarding recent changes to the National Association of Realtors' Clear Cooperation Policy. Management reaffirmed its commitment to transparency and broad listing distribution. Looking forward, the StockStory team will be watching (1) adoption rates and impact of the Aspire onboarding program on agent recruitment and retention, (2) further progress in digital product rollouts and their effect on agent productivity, and (3) stabilization or improvement in the mortgage segment's revenue. Continued international agent growth and the company's ability to manage expenses while pursuing new revenue streams will also be important drivers to track. RE/MAX currently trades at a forward P/E ratio of 6×. In the wake of earnings, is it a buy or sell? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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
03-05-2025
- Business
- Yahoo
RE/MAX Holdings Inc (RMAX) Q1 2025 Earnings Call Highlights: Strong Margins and Strategic ...
Total Revenue: $74.5 million. Adjusted EBITDA: $19.3 million, up 1.5% over Q1 of last year. Adjusted EBITDA Margin: 25.9%, an increase of 164 basis points over Q1 2024. Adjusted Diluted EPS: $0.24. Revenue Excluding Marketing Funds: $55.6 million, a decrease of 4.3% compared to the same period last year. Operating Expenses: Decreased by $2.7 million, or 5.9%, to $43 million. Total Leverage Ratio: 3.61 to 1 as of March 30. Agent Count Growth Guidance for Q2 2025: Expected to increase 1.5% to 2.5% over Q2 2024. Revenue Guidance for Q2 2025: Expected in the range of $70 to $75 million. Adjusted EBITDA Guidance for Q2 2025: Expected in the range of $22.5 to $25.5 million. Full Year 2025 Revenue Guidance: Expected in the range of $290 to $310 million. Full Year 2025 Adjusted EBITDA Guidance: Expected in the range of $90 to $100 million. Warning! GuruFocus has detected 4 Warning Signs with RMAX. Release Date: May 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RE/MAX Holdings Inc (NYSE:RMAX) reported higher than expected revenue, margins, and profits for the first quarter of 2025. The company introduced several new initiatives, including a refreshed branding, advanced marketing resources, and a comprehensive global referral system. The Aspire program aims to attract and develop the next generation of top-producing RE/MAX agents, enhancing recruitment and retention. International agent growth was strong, with a 10% increase in global agent count in Q1. Operational efficiencies led to improved margin performance for the fourth consecutive quarter. Revenue excluding marketing funds decreased by 4.3% compared to the same period last year, driven by lower US agent counts and adverse foreign currency movements. The challenging mortgage market continues to impact the mortgage segment, with expectations of a few more quarters before consistent revenue growth returns. Franchise sales revenue was down year over year, partly due to the wind down of prior technology acquisitions. The macroeconomic environment and real estate market remain uncertain, affecting forecasting and strategic planning. US agent count has been declining, although there are signs of stabilization and potential growth. Q: Can you explain the decline in franchise sales revenue and whether it's due to conference attendance or other strategic initiatives? A: Karri Callahan, CFO: The decline is partly due to lower conference attendance, which impacted revenue by a few hundred thousand dollars. Additionally, the wind-down of prior technology acquisitions, like Gadbury, is pressuring the line by over $50 million. However, newer initiatives like our lead concierge program and RE/MAX Media Network are offsetting some of this decline. We see potential for significant revenue growth from these initiatives in the long term. Q: How are you managing operating expenses (opex) given the inflationary environment, and is there room for further cost reductions? A: Karri Callahan, CFO: We've instilled strong discipline around cost management, focusing on strategic allocation of resources. We've seen relief from litigation costs and are optimizing personnel expenses. Our focus is on maintaining cost efficiency while driving top-line growth, which should enhance profitability and margins. Q: How does the new Aspire program position RE/MAX competitively, and does it attract agents who might not have considered RE/MAX before? A: W. Erik Carlson, CEO: Aspire is designed to enhance our value proposition and open up the top of the recruitment funnel. It provides financial risk-sharing with brokers and focuses on onboarding agents to ensure productivity and professionalism. This program, along with other digital and social initiatives, is attracting interest from agents outside the RE/MAX network. Q: Can you provide more detail on the early feedback and adoption of the Aspire program and its potential impact on US agent count? A: W. Erik Carlson, CEO: Feedback has been positive, with higher-than-expected adoption rates. The program is designed to stabilize and grow agent count by enhancing our value proposition and attracting agents from other brokerages. We are seeing increased interest and engagement, which is promising for future growth. Q: What is RE/MAX's stance on the National Association of Realtors' updated clear cooperation policy, and how does it affect franchisees? A: W. Erik Carlson, CEO: We support transparency and broad distribution of listings, which we believe benefits consumers. While private listings have their place, we advocate for the majority of listings to be widely distributed. We provide guidance to our brokers to ensure compliance with local rules while prioritizing consumer interests. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
RE/MAX (RMAX) Surpasses Q1 Earnings Estimates
RE/MAX (RMAX) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this franchisor of residential real estate brokerages would post earnings of $0.29 per share when it actually produced earnings of $0.30, delivering a surprise of 3.45%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. RE/MAX , which belongs to the Zacks Real Estate - Operations industry, posted revenues of $74.47 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $78.29 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. RE/MAX shares have lost about 28.3% since the beginning of the year versus the S&P 500's decline of -5.3%. While RE/MAX has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for RE/MAX: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.41 on $76.22 million in revenues for the coming quarter and $1.30 on $299.06 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Real Estate - Operations is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Redfin (RDFN), has yet to report results for the quarter ended March 2025. The results are expected to be released on May 6. This real estate broker is expected to post quarterly loss of $0.64 per share in its upcoming report, which represents a year-over-year change of -12.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Redfin's revenues are expected to be $220.36 million, down 2.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RE/MAX Holdings, Inc. (RMAX) : Free Stock Analysis Report Redfin Corporation (RDFN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Earnings To Watch: RE/MAX Holdings Inc (RMAX) Reports Q1 2025 Results
RE/MAX Holdings Inc (NYSE:RMAX) is set to release its Q1 2025 earnings on May 2, 2025. The consensus estimate for Q1 2025 revenue is $73.11 million, and the earnings are expected to come in at -$0.04 per share. The full year 2025's revenue is expected to be $296.59 million and the earnings are expected to be $0.36 per share. More detailed estimate data can be found on the Forecast page. Warning! GuruFocus has detected 4 Warning Signs with RMAX. Revenue estimates for RE/MAX Holdings Inc (NYSE:RMAX) have declined over the past 90 days, from $311.90 million to $296.59 million for the full year 2025, and from $318.89 million to $302.36 million for 2026. Earnings estimates have also decreased from $0.38 per share to $0.36 per share for the full year 2025, while remaining flat at $0.41 per share for 2026. In the previous quarter ending on December 31, 2024, RE/MAX Holdings Inc's (NYSE:RMAX) actual revenue was $72.47 million, which missed analysts' expectations of $74.36 million by -2.54%. The actual earnings were $0.29 per share, which surpassed analysts' expectations of $0.05 per share by 480%. Following the release of the results, RE/MAX Holdings Inc (NYSE:RMAX) saw a decrease of -10.25% in one day. Based on the one-year price targets offered by two analysts, the average target price for RE/MAX Holdings Inc (NYSE:RMAX) is $9.75, with a high estimate of $10.50 and a low estimate of $9.00. The average target implies an upside of 27.45% from the current price of $7.65. According to GuruFocus estimates, the estimated GF Value for RE/MAX Holdings Inc (NYSE:RMAX) in one year is $13.32, suggesting an upside of 74.12% from the current price of $7.65. Based on the consensus recommendation from five brokerage firms, RE/MAX Holdings Inc's (NYSE:RMAX) average brokerage recommendation is currently 3.2, indicating a "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies a Strong Buy, and 5 denotes Sell. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Sign in to access your portfolio
