Earnings To Watch: Compass (COMP) Reports Q1 Results Tomorrow

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Earnings To Watch: Compass (COMP) Reports Q1 Results Tomorrow

Real estate technology company Compass (NYSE:COMP) will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Compass missed analysts' revenue expectations by 3% last quarter, reporting revenues of $1.10 billion, flat year on year. It was a weaker quarter for the company, with a miss of analysts' revenue and earnings estimates.

Is Compass a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Compass's revenue to grow 7.8% year on year to $1.03 billion, a reversal from the 31.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.

Compass Total Revenue
Compass Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Compass has missed Wall Street's revenue estimates four times over the last two years.

Looking at Compass's peers in the real estate services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. RE/MAX's revenues decreased 8.3% year on year, beating analysts' expectations by 1.3%, and JLL reported revenues up 8.7%, topping estimates by 6.4%. RE/MAX traded up 7.5% following the results.

Read our full analysis of RE/MAX's results here and JLL's results here.

Investors in the real estate services segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Compass is down 13.8% during the same time and is heading into earnings with an average analyst price target of $4 (compared to the current share price of $3.36).

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