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What's in Store for RE/MAX Holdings (RMAX) Q1 Earnings?
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RE/MAX Holdings, Inc. (RMAX - Free Report) , a real estate operation firm, is slated to report first-quarter 2018 results on May 3, after the market closes. While its revenues are expected to improve year over year, earnings are expected to remain flat.
The company delivered earnings per share (EPS) of 46 cents in the last-reported quarter, in line with the Zacks Consensus Estimate.
Further, it recorded an average positive surprise of 4.2%. The surprise history is best depicted by the graph below:
In addition, the stock has gained 10.1% in the past three months, outperforming the 1.5% loss incurred by the industry it belongs to.
Factors to Influence Q1 results
RE/MAX Holdings enjoys an enviable global footprint. The company has a steady fee-based revenue model, with specific focus on its agents. Also, it enjoys solid cash flow and margins.
RE/MAX Holdings boasts a highly-productive network of more than 115,000 agents. Management projects the number of agents to be up 5.5-6.5% in first-quarter 2018, on a year-over-year basis. This is expected to have had a positive influence on the company’s performance in the quarter to be reported.
Subsequently, management estimates revenues of $49.5-$51 million and adjusted EBITDA margin in the band of 38-39%. The Zacks Consensus Estimate for revenues is pegged at $50 million and reflects an increase of 3.7% year over year.
Notably, on Feb 27, the company announced the acquisition of booj — a web designing and technology company. The platform provided by booj includes websites, mobile apps, lead generation and cultivation systems, and predictive analytics designed for the real estate industry.
This move marks a shift in the company’s technology strategy and provides a competitive edge. It plans to leverage the capabilities of booj and other partners in order to deliver technology solutions to its clients. Further, this newly-acquired platform complements RE/MAX Holdings’ existing platforms and is expected to improve the efficiency of the company’s agents.
Amid these, the Zacks Consensus Estimate for the first-quarter earnings has been revised 5.3% upward to 40 cents over the past month, reflecting bullish analyst sentiment.
Earnings Whispers
Our proven model does not conclusively show that RE/MAX Holdings is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: RE/MAX Holdings’ Earnings ESP is -1.68%.
(You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.)
Zacks Rank: RE/MAX Holdings carries a Zacks Rank of 3, which increases the predictive power of ESP. However, we also need a positive ESP to be confident of the earnings beat.
Stocks That Warrant a Look
Here are a few stocks in the REIT space that you may want to consider, as our model shows that these have the right combination of elements to come up with a positive surprise this time around:
Spirit Realty Capital , scheduled to report quarterly numbers on May 1, has an Earnings ESP of +0.49% and a Zacks Rank of 3.
Essex Property Trust (ESS - Free Report) set to report Q1 numbers on May 2, has an Earnings ESP of +0.05% and a Zacks Rank of 3.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in Store for RE/MAX Holdings (RMAX) Q1 Earnings?
RE/MAX Holdings, Inc. (RMAX - Free Report) , a real estate operation firm, is slated to report first-quarter 2018 results on May 3, after the market closes. While its revenues are expected to improve year over year, earnings are expected to remain flat.
The company delivered earnings per share (EPS) of 46 cents in the last-reported quarter, in line with the Zacks Consensus Estimate.
Further, it recorded an average positive surprise of 4.2%. The surprise history is best depicted by the graph below:
RE/MAX Holdings, Inc. Price and EPS Surprise
RE/MAX Holdings, Inc. Price and EPS Surprise | RE/MAX Holdings, Inc. Quote
In addition, the stock has gained 10.1% in the past three months, outperforming the 1.5% loss incurred by the industry it belongs to.
Factors to Influence Q1 results
RE/MAX Holdings enjoys an enviable global footprint. The company has a steady fee-based revenue model, with specific focus on its agents. Also, it enjoys solid cash flow and margins.
RE/MAX Holdings boasts a highly-productive network of more than 115,000 agents. Management projects the number of agents to be up 5.5-6.5% in first-quarter 2018, on a year-over-year basis. This is expected to have had a positive influence on the company’s performance in the quarter to be reported.
Subsequently, management estimates revenues of $49.5-$51 million and adjusted EBITDA margin in the band of 38-39%. The Zacks Consensus Estimate for revenues is pegged at $50 million and reflects an increase of 3.7% year over year.
Notably, on Feb 27, the company announced the acquisition of booj — a web designing and technology company. The platform provided by booj includes websites, mobile apps, lead generation and cultivation systems, and predictive analytics designed for the real estate industry.
This move marks a shift in the company’s technology strategy and provides a competitive edge. It plans to leverage the capabilities of booj and other partners in order to deliver technology solutions to its clients. Further, this newly-acquired platform complements RE/MAX Holdings’ existing platforms and is expected to improve the efficiency of the company’s agents.
Amid these, the Zacks Consensus Estimate for the first-quarter earnings has been revised 5.3% upward to 40 cents over the past month, reflecting bullish analyst sentiment.
Earnings Whispers
Our proven model does not conclusively show that RE/MAX Holdings is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: RE/MAX Holdings’ Earnings ESP is -1.68%.
(You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.)
Zacks Rank: RE/MAX Holdings carries a Zacks Rank of 3, which increases the predictive power of ESP. However, we also need a positive ESP to be confident of the earnings beat.
Stocks That Warrant a Look
Here are a few stocks in the REIT space that you may want to consider, as our model shows that these have the right combination of elements to come up with a positive surprise this time around:
Amanda Hoffer Properties (AHH - Free Report) , slated to release first-quarter results on May 1, has an Earnings ESP of +0.88% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spirit Realty Capital , scheduled to report quarterly numbers on May 1, has an Earnings ESP of +0.49% and a Zacks Rank of 3.
Essex Property Trust (ESS - Free Report) set to report Q1 numbers on May 2, has an Earnings ESP of +0.05% and a Zacks Rank of 3.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>