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It's been a mediocre week for RE/MAX Holdings, Inc. (NYSE:RMAX) shareholders, with the stock dropping 10% to US$9.11 in the week since its latest full-year results. Revenues were US$308m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.37, an impressive 200% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for RE/MAX Holdings
Taking into account the latest results, RE/MAX Holdings' four analysts currently expect revenues in 2025 to be US$305.0m, approximately in line with the last 12 months. Per-share earnings are expected to increase 3.0% to US$0.39. In the lead-up to this report, the analysts had been modelling revenues of US$310.9m and earnings per share (EPS) of US$0.40 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$9.17, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values RE/MAX Holdings at US$10.00 per share, while the most bearish prices it at US$7.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2025. This indicates a significant reduction from annual growth of 3.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - RE/MAX Holdings is expected to lag the wider industry.