Real Estate Services Stocks Q4 Results: Benchmarking Compass (NYSE:COMP)
Let's dig into the relative performance of Compass (NYSE:COMP) and its peers as we unravel the now-completed Q4 real estate services earnings season.
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 11 real estate services stocks we track reported a weak Q4; on average, revenues beat analyst consensus estimates by 1.6%. while next quarter's revenue guidance was 26.2% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but real estate services stocks held their ground better than others, with share prices down 1% on average since the previous earnings results.
Compass (NYSE:COMP)
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 $1.10 billion, down 1% year on year, falling short of analyst expectations by 3%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates. On the other hand, next quarter's revenue guidance came in higher than Wall Street's estimates.
"Over the past two years, we have successfully navigated the worst residential real estate market in decades and significantly reset our operating expense levels, positioning Compass for what we believe will be significant upside when the market begins to recover," said Robert Reffkin, Founder and Chief Executive Officer of Compass.
Compass delivered the weakest performance against analyst estimates of the whole group. The stock is up 14.1% since the results and currently trades at $3.91.
Read our full report on Compass here, it's free.
Best Q4: JLL (NYSE:JLL)
Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.
JLL reported revenues of $5.88 billion, up 4.9% year on year, outperforming analyst expectations by 1.5%. It was a decent quarter for the company, with revenue and EPS outperforming expectations thanks to better-than-expected results in its Capital Markets segment ($537 million vs estimates of $462 million).
The stock is up 7% since the results and currently trades at $197.55.
Is now the time to buy JLL? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $1.25 billion, down 5.5% year on year, falling short of analyst expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
The stock is down 20.3% since the results and currently trades at $6.1.
Read our full analysis of Anywhere Real Estate's results here.
The Real Brokerage (NASDAQ:REAX)
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 $181.3 million, up 88.7% year on year, surpassing analyst expectations by 12.4%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. On the other hand, revenue and adjusted EBITDA exceeded expectations.
The Real Brokerage delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 57% since the results and currently trades at $4.49.
Read our full, actionable report on The Real Brokerage here, it's free.
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 $2.55 billion, down 3.6% year on year, surpassing analyst expectations by 4.9%. It was a decent quarter for the company, with revenue and EPS exceeding expectations. That was driven by strong outperformance in its Leasing segment, which posted revenue of $587 million (5% year-on-year growth) versus Wall Street consensus estimates of $509 million.
The stock is down 1.4% since the results and currently trades at $10.98.
Read our full, actionable report on Cushman & Wakefield here, it's free.
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