Compared to Estimates, RMR Group (RMR) Q3 Earnings: A Look at Key Metrics

RMR Group (RMR) reported $280.23 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 32.8%. EPS of $0.48 for the same period compares to $0.59 a year ago.

The reported revenue represents a surprise of +27.30% over the Zacks Consensus Estimate of $220.13 million. With the consensus EPS estimate being $0.47, the EPS surprise was +2.13%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how RMR Group performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Reimbursable compensation and benefits: $15.24 million versus the three-analyst average estimate of $16.04 million. The reported number represents a year-over-year change of +7.4%.

  • Total management and advisory services revenues: $92.49 million versus the three-analyst average estimate of $46.19 million.

  • Other reimbursable expenses: $170.88 million versus the two-analyst average estimate of $158.50 million. The reported number represents a year-over-year change of +18.7%.

  • Revenues- Management services: $45.87 million compared to the $45.13 million average estimate based on two analysts. The reported number represents a change of -11.5% year over year.

  • Revenues- Advisory services: $1.14 million versus $1.20 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.4% change.

View all Key Company Metrics for RMR Group here>>>

Shares of RMR Group have returned -3.7% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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