Real Estate Services Stocks Q3 In Review: Cushman & Wakefield (NYSE:CWK) Vs Peers
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the real estate services industry, including Cushman & Wakefield (NYSE:CWK) 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 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.
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 fell short of analysts’ expectations by 1.8%. Overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
Cushman & Wakefield Total Revenue
Interestingly, the stock is up 13.5% since reporting and currently trades at $14.90.
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 estimates and a solid beat of analysts’ EBITDA estimates.
The Real Brokerage Total Revenue
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 2.7% since reporting. It currently trades at $5.49.
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, falling short of analysts’ expectations by 5.7%. It was a disappointing quarter as it posted a miss of analysts’ transacted dollars estimates and a significant miss of analysts’ adjusted operating income estimates.
Anywhere Real Estate delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 26.2% since the results and currently trades at $5.05.
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 $78.48 million, down 3.4% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter missing analysts’ expectations.
RE/MAX had the weakest full-year guidance update among its peers. The stock is up 8.4% since reporting and currently trades at $13.28.
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Marcus & Millichap reported revenues of $168.5 million, up 4% year on year. This result beat analysts’ expectations by 4.7%. Overall, it was a stunning quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The stock is up 2% since reporting and currently trades at $40.99.
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 has 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.
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