Winners And Losers Of Q3: Newmark (NASDAQ:NMRK) Vs The Rest Of The Real Estate Services Stocks
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including Newmark (NASDAQ:NMRK) and its peers.
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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was 1.4% below.
While some real estate services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.1% since the latest earnings results.
Newmark (NASDAQ:NMRK)
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 $685.9 million, up 11.3% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Newmark achieved the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 0.7% since reporting and currently trades at $13.92.
Read our full report on Newmark here, it’s free .
Best Q3: The Real Brokerage (NASDAQ:REAX)
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 $372.5 million, up 73.5% year on year, outperforming analysts’ expectations by 7.4%. 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 scored the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $5.60.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free .
Weakest Q3: eXp World (NASDAQ:EXPI)
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 $1.23 billion, up 1.5% year on year, falling short of analysts’ expectations by 3.4%. It was a softer quarter as it posted a miss of analysts’ adjusted operating income and EPS estimates.
eXp World delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22.2% since the results and currently trades at $11.20.
Read our full analysis of eXp World’s results here.
Opendoor (NASDAQ:OPEN)
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 $1.38 billion, up 40.5% year on year. This result beat analysts’ expectations by 8.7%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
Opendoor pulled off the biggest analyst estimates beat among its peers. The stock is down 25.5% since reporting and currently trades at $1.40.
Read our full, actionable report on Opendoor here, it’s free.
Cushman & Wakefield (NYSE:CWK)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Cushman & Wakefield reported revenues of $2.34 billion, up 2.5% year on year. This print met analysts’ expectations. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ Leasing revenue estimates.
The stock is up 1.4% since reporting and currently trades at $13.32.
Read our full, actionable report on Cushman & Wakefield here, it’s free.
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