Real estate franchise company RE/MAX (NYSE:RMAX) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
RE/MAX met analysts’ revenue expectations last quarter, reporting revenues of $78.45 million, down 4.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates. It reported 143,542 agents, flat year on year.
Is RE/MAX a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RE/MAX’s revenue to decline 3.7% year on year to $78.22 million, improving from the 8.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RE/MAX has missed Wall Street’s revenue estimates five times over the last two years.
Looking at RE/MAX’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 14.8%, beating analysts’ expectations by 2.7%, and Nike reported a revenue decline of 10.4%, in line with consensus estimates. CBRE traded up 7.7% following the results while Nike was down 6.8%.
Read our full analysis of CBRE’s results here and Nike’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. RE/MAX is down 2.5% during the same time and is heading into earnings with an average analyst price target of $9.38 (compared to the current share price of $12.18).
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