Real Estate Services Stocks Q3 Teardown: Anywhere Real Estate (NYSE:HOUS) Vs The Rest
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how real estate services stocks fared in Q3, starting with Anywhere Real Estate (NYSE:HOUS).
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 14 real estate services stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 7.8% below.
Luckily, real estate services stocks have performed well with share prices up 14.3% on average since the latest earnings results.
Anywhere Real Estate (NYSE:HOUS)
Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.
Anywhere Real Estate reported revenues of $1.54 billion, down 3.1% year on year. This print fell short of analysts’ expectations by 5.7%. Overall, it was a disappointing quarter for the company with a miss of analysts’ adjusted operating income estimates.
"I am proud of our third quarter performance as Anywhere delivered strong Operating EBITDA and free cash flow, invested meaningfully in the business for future growth, gained luxury share, and strengthened our balance sheet," said Ryan Schneider, Anywhere president and CEO.
Anywhere Real Estate Total Revenue
Anywhere Real Estate delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 26.2% since reporting and currently trades at $5.05.
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 an impressive beat of analysts’ EPS and EBITDA estimates.
The Real Brokerage Total Revenue
The Real Brokerage scored 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 2.7% since reporting. It currently trades at $5.49.
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Offerpad reported revenues of $208.1 million, down 11.2% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations.
Offerpad delivered the slowest revenue growth in the group. Interestingly, the stock is up 46.5% since the results and currently trades at $4.79.
Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.
Compass reported revenues of $1.49 billion, up 11.7% year on year. This number met analysts’ expectations. Overall, it was a very strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
The stock is up 29.4% since reporting and currently trades at $7.20.
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 result surpassed analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Newmark scored the highest full-year guidance raise among its peers. The stock is up 6.7% since reporting and currently trades at $15.63.
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September, a quarter in November) have kept 2024 stock markets frothy, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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