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What's in the Offing for Realogy Holdings (RLGY) Q4 Earnings?

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Realogy Holdings Corp. (RLGY - Free Report) is slated to release fourth-quarter and full-year 2020 results on Feb 23, before the bell. Results are anticipated to display year-over-year increases in revenues and earnings.

In the last reported quarter, this Madison, NJ-based full-service residential real estate services company delivered a 16.2% earnings surprise. Results reflected better-than-expected growth in revenues.

Over the preceding four quarters, the company surpassed estimates on three occasions and missed in the other, the average beat being 58.01%. The graph below depicts this surprise history:

Realogy Holdings Corp. Price and EPS Surprise

Realogy Holdings Corp. Price and EPS Surprise

Realogy Holdings Corp. price-eps-surprise | Realogy Holdings Corp. Quote

Let’s see how things have shaped up prior to this announcement.

Factors at Play

Realogy Holdings, a provider of U.S. residential real estate services, including franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture, is likely to have continued to benefit from its diverse brand portfolio that encompasses some of the reputed names in the real estate landscape.

Moreover, technology initiatives and agent strength amid a backdrop of strong housing market is likely to have helped the company grow and record healthy transaction volumes with its mortgage joint venture and title operations during the quarter under review. The company is also likely to have continued focusing on strengthening its balance sheet and deleveraging. However, the pandemic-induced macroeconomic uncertainties and competitive pressure remain woes.

In January, the company reported preliminary results for the fourth quarter and full-year 2020. The company recorded a 44% year-on-year surge in closed transaction volume in the Realogy Franchise and Brokerage Group combined. For the full year, the company witnessed an increase of 13%.

Further, Realogy Franchise Group recorded a jump of 46% in closed transaction volume for the fourth quarter and 16% for the full year.

Nonetheless, with respect to the company’s conduction of an impairment analysis of the assets of Cartus Relocation Services, management noted that it expects to incur an additional non-cash impairment charge of $55-$65 million for fourth-quarter 2020.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1.56 billion, suggesting an increase of 17.6% year on year.

Nevertheless, Realogy Holdings’ activities during the October-December period were inadequate to win analysts’ confidence. The Zacks Consensus Estimate for quarterly earnings remained unrevised at 76 cents over the past month. The figure suggests a year-over-year increase from 20 cents.

For the full year, the Zacks Consensus Estimate for earnings per share has remained unchanged at $1.84 over the past month. The figure calls for an 80.4% surge year on year. However, revenues are projected to edge down 1.1% year over year to $5.74 billion.

Here is what our quantitative model predicts:

Our proven model does not conclusively predict a positive earnings surprise for Realogy Holdings this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Realogy Holdings currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Stocks to Consider

Here are a few stocks in the broader real estate sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:

CBRE Group Inc. (CBRE - Free Report) , set to report quarterly numbers on Feb 23, currently has an Earnings ESP of +10.42% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

RE/MAX Holdings, Inc. (RMAX - Free Report) , slated to release earnings figures on Feb 25, has an Earnings ESP of +6.02% and holds a Zacks Rank of 3, currently.

Redfin Corporation (RDFN - Free Report) , scheduled to announce quarterly results on Feb 24, has an Earnings ESP of +84.62% and carries a Zacks Rank of 3 at present.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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