Real estate technology company The Real Brokerage (NASDAQ:REAX) will be reporting earnings tomorrow before the bell. Here’s what to expect.
The Real Brokerage beat analysts’ revenue expectations by 7.4% last quarter, reporting revenues of $372.5 million, up 73.5% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is The Real Brokerage a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The Real Brokerage’s revenue to grow 65.5% year on year to $300.1 million, slowing from the 88.7% increase 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 to stay the course heading into earnings. The Real Brokerage has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 18.6% on average.
Looking at The Real Brokerage’s peers in the real estate services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Marcus & Millichap delivered year-on-year revenue growth of 44.4%, beating analysts’ expectations by 20.2%, and Compass reported revenues up 25.9%, topping estimates by 3.4%. Marcus & Millichap traded up 5.4% following the results while Compass was also up 28.2%.
Read our full analysis of Marcus & Millichap’s results here and Compass’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed’s rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the real estate services stocks have shown solid performance, the group has generally underperformed, with share prices down 7.8% on average over the last month. The Real Brokerage is down 1.8% during the same time and is heading into earnings with an average analyst price target of $6.67 (compared to the current share price of $4.91).
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