Q1 Earnings Highlights: Marcus & Millichap (NYSE:MMI) Vs The Rest Of The Real Estate Services Stocks
Looking back on real estate services stocks' Q1 earnings, we examine this quarter's best and worst performers, including Marcus & Millichap (NYSE:MMI) 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 mixed Q1; on average, revenues beat analyst consensus estimates by 4.2%. while next quarter's revenue guidance was 4% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the real estate services stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.3% on average since the previous earnings results.
Marcus & Millichap (NYSE:MMI)
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Marcus & Millichap reported revenues of $129.1 million, down 16.6% year on year, topping analysts' expectations by 1.3%. It was a solid quarter for the company, with a decent beat of analysts' earnings estimates.
The stock is down 8.4% since the results and currently trades at $30.56.
Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $5.12 billion, up 8.7% year on year, outperforming analysts' expectations by 6.4%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings and operating margin estimates.
The stock is up 7.2% since the results and currently trades at $198.68.
Is now the time to buy JLL? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $1.13 billion, down 0.4% year on year, falling short of analysts' expectations by 1.8%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Anywhere Real Estate had the weakest performance against analyst estimates in the group. The stock is down 35.6% since the results and currently trades at $3.49.
Read our full analysis of Anywhere Real Estate's results here.
eXp World (NASDAQ:EXPI)
Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $943.1 million, up 10.9% year on year, surpassing analysts' expectations by 5.6%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
The stock is up 9.9% since the results and currently trades at $10.92.
Read our full, actionable report on eXp World 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 $2.18 billion, down 2.9% year on year, in line with analysts' expectations. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 3.6% since the results and currently trades at $10.28.
Read our full, actionable report on Cushman & Wakefield here, it's free.
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