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Key Factors to Impact eXp World Holdings (EXPI) Q4 Earnings

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eXp World Holdings, Inc. (EXPI - Free Report) is scheduled to report fourth-quarter and full-year 2020 results on Mar 11, after the closing bell. The company’s quarterly results will likely display year-over-year growth in earnings per share.

In the last reported quarter, this holding company for eXp Realty, Virbela and SUCCESS Enterprises, delivered net income of $14.9 million, or 20 cents per share, as against the net loss of $1.8 million, or 3 cents per share incurred in the year-ago period. Results reflected continued rapid agent growth and increased transactions.

Let’s see how things have shaped up prior to the fourth-quarter earnings release.

Factors at Play

eXp World Holdings is likely to have benefited in the fourth quarter, as the pandemic has led to adoption of social-distancing norms and remote working. eXp Realty is one of the fastest-growing, global residential real estate companies, and is likely to have attracted agents during the December-end quarter. Its cloud-based remote model has become attractive to agents and independent brokerages, especially during the health crisis. The company is likely to have gained from scale and operating as a remote organization.

VirBELA has witnessed a substantial increase in the usage and adoption owing to its effectiveness in supporting remote work and virtual events amid social-distancing measures. Therefore, the company is anticipated to have gained from its investment in the underlying VirBELA platform.  

Early this month, the company reported preliminary results for the fourth quarter and full-year 2020.

For the fourth quarter, management estimates a 122% year-on-year surge in revenues to approximately $609 million. This upswing seems to be driven by the growing base of agents and brokers that helped capitalize on the solid residential real estate market.

Particularly, the number of agents and brokers on the eXp Realty platform shot up 63% in 2020 to 41,313, from 25,423 at the end of 2019.

Residential transaction sides closed in fourth-quarter 2020 soared 113% to 82,055 from the 38,611 in the comparable period last year. Residential transaction volume closed increased a whopping 123% to $24.6 billion compared with the year-ago quarter’s $11 billion.

Consequently, the fourth-quarter net income is projected to increase to $7.7 million from the $0.8 million reported in the year-ago period.

The Zacks Consensus Estimate for the quarterly earnings per share has been unchanged at 6 cents per share over the past month. However, it calls for a significant increase from the 1 cents per share reported in the year-ago period.

For full-year 2020, management projects 84% year-on-year growth in revenues to $1.8 billion. Residential transaction sides closed in 2020 jumped 77% to 238,981 from 135,322 in 2019. Residential transaction volume closed increased 89% to $72.2 billion compared with $38.2 billion in 2019.

Consequently, 2020 net income is expected to be $31.0 million, as against the net loss of $9.6 million in 2019.

The Zacks Consensus Estimate for 2020 earnings per share has moved up a cent to 27 cents per share over the past month. The company has reported a net loss per share of 8 cents in 2019.

Here is what our quantitative model predicts:

Our proven model does not conclusively predict a positive surprise in terms of earnings per share for eXp World 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.

eXp World Holdings currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%.

Stocks to Consider

Here are a few stocks in the Real Estate - Operations industry that you may want to consider:

CBRE Group’s (CBRE - Free Report) Zacks Consensus Estimate for 2021 earnings per share per share has moved up 13.5% to $3.70 over the past month. The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Colliers International Group’s (CIGI - Free Report) earnings per share estimate for the current year has been revised 4.7% upward to $5.11 over the past month. The company carries a Zacks Rank of 2, currently.

FirstService Corporation’s (FSV - Free Report) Zacks Consensus Estimate for the ongoing-year earnings per share has moved marginally north to $3.71 in a month’s time. The company holds a Zacks Rank of 2, 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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