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 Q4, starting with Redfin (NASDAQ: RDFN).
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 13 real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 5.5% while next quarter’s revenue guidance was 1.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.8% since the latest earnings results.
Redfin (NASDAQ: RDFN)
Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ: RDFN) is a real estate company offering brokerage services through an online platform.
Redfin reported revenues of $244.3 million, up 12% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
“After recording our fourth straight quarter of revenue growth, with profits improving year-over-year in every business segment, we’re headed into 2025 with more demand, and a bigger and better sales force,” said Redfin CEO Glenn Kelman.
The stock is up 46.6% since reporting and currently trades at $11.20.
Read our full report on Redfin here, it’s free.
Best Q4: 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 $350.6 million, up 93.4% year on year, outperforming analysts’ expectations by 16.8%. 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 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 12% since reporting. It currently trades at $4.36.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Offerpad (NYSE: OPAD)
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 $174.3 million, down 27.5% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 15.2% since the results and currently trades at $1.84.
Read our full analysis of Offerpad’s results here.
Newmark (NASDAQ: NMRK)
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 $888.3 million, up 18.8% year on year. This result topped analysts’ expectations by 12.3%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates.
Newmark scored the highest full-year guidance raise among its peers. The stock is down 8.7% since reporting and currently trades at $12.44.
Read our full, actionable report on Newmark here, it’s free.
CBRE (NYSE: CBRE)
Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.
CBRE reported revenues of $10.4 billion, up 16.2% year on year. This number surpassed analysts’ expectations by 1.2%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ Advisory Services revenue estimates.
The stock is down 7.9% since reporting and currently trades at $129.60.
Read our full, actionable report on CBRE here, it’s free.
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