Wrapping up Q1 earnings, we look at the numbers and key takeaways for the real estate services stocks, including Anywhere Real Estate (NYSE:HOUS) 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. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and real estate services stocks have held roughly steady amidst all this, with share prices up 1.9% on average since the previous earnings results.
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 continued to demonstrate powerful leadership in the face of a challenging housing market and industry landscape, and our results in the quarter reinforce our ability to execute with discipline and focus while propelling our strategy forward,” said Ryan Schneider, Anywhere president and CEO.
Anywhere Real Estate delivered the weakest performance against analyst estimates of the whole group. The stock is down 17.2% since the results and currently trades at $4.49.
Read our full report on Anywhere Real Estate 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 estimates.
The stock is up 7.4% since the results and currently trades at $199.
Is now the time to buy JLL? Access our full analysis of the earnings results here, it’s free.
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 $285.4 million, down 53.2% year on year, exceeding analysts’ expectations by 5.6%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts’ expectations.
The stock is down 22.7% since the results and currently trades at $5.69.
Read our full analysis of Offerpad’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 10.9% since the results and currently trades at $11.02.
Read our full, actionable report on eXp World here, it’s free.
RE/MAX (NYSE:RMAX)
Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories.
RE/MAX reported revenues of $78.29 million, down 8.3% year on year, surpassing analysts’ expectations by 1.3%. It was a weaker quarter for the company, with revenue guidance for the next quarter falling below analysts’ estimates.
RE/MAX pulled off the highest full-year guidance raise among its peers. The stock is up 18.7% since the results and currently trades at $8.51.
Read our full, actionable report on RE/MAX here, it’s free.
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