Real estate franchise company RE/MAX (NYSE: RMAX) will be reporting earnings this Thursday afternoon. Here’s what to expect.
RE/MAX missed analysts’ revenue expectations last quarter, reporting revenues of $70.23 million, down 5.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. It reported 149,192 agents, up 2.1% year on year.
Is RE/MAX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RE/MAX’s revenue to be flat year on year, improving from the 7.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RE/MAX has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RE/MAX’s peers in the consumer discretionary - real estate services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Compass delivered year-on-year revenue growth of 109%, beating analysts’ expectations by 4.7%, and JLL reported revenues up 10.8%, topping estimates by 1.5%. JLL traded up 4.4% following the results.
Read our full analysis of Compass’s results here and JLL’s results here.
Investors in the consumer discretionary - real estate services segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. RE/MAX is down 14.2% during the same time and is heading into earnings with an average analyst price target of $11.40 (compared to the current share price of $9.73).
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