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Will RE/MAX Holdings (RMAX) Disappoint in Q2 Earnings?
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Real estate operations firm RE/MAX Holdings, Inc. (RMAX - Free Report) is expected to report second-quarter 2016 results on Aug 4, 2016, after the market closes.
The company reported a positive earnings surprise of 14.7% in the preceding quarter, and an average beat of 11.1% for the trailing four quarters. The Zacks Consensus estimate for second-quarter earnings is currently pegged at 44 cents.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Denver, CO-based RE/MAX Holdings is a leading franchisor of real estate brokerage services. The company expects second-quarter 2016 revenues to decline 3.5–4.5% year over year. Further, the exchange rate fluctuation is likely to affect results of this company.
However, the company boasts a highly productive network of over 100,000 agents. Number of agents is expected to rise by 5.5% to 6.0% over second-quarter 2016, driven by strong agent growth outside the U.S. and Canada. This should have positive impact on the second quarter results.
Earnings Whispers
Our proven model does not conclusively show that RE/MAX Holdings will beat 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: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, in this case respectively 43 cents and 44 cents, stands at -2.27%.
Zacks Rank: RE/MAX Holdings has a Zacks Rank #4 (Sell), As it is we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a few stocks in the real estate investment trust sector you may want to consider, as our model shows that they have the right combination of elements to post a positive surprise this quarter:
Ashford Hospitality Prime, Inc. has an Earnings ESP of +6.15% and a Zacks Rank #3. The company will report results on Aug 3.
EPR Properties (EPR - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3. The company will release results on Aug 3.
National Health Investors Inc. (NHI - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2. The company will report results on Aug 5.
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Will RE/MAX Holdings (RMAX) Disappoint in Q2 Earnings?
Real estate operations firm RE/MAX Holdings, Inc. (RMAX - Free Report) is expected to report second-quarter 2016 results on Aug 4, 2016, after the market closes.
The company reported a positive earnings surprise of 14.7% in the preceding quarter, and an average beat of 11.1% for the trailing four quarters. The Zacks Consensus estimate for second-quarter earnings is currently pegged at 44 cents.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Denver, CO-based RE/MAX Holdings is a leading franchisor of real estate brokerage services. The company expects second-quarter 2016 revenues to decline 3.5–4.5% year over year. Further, the exchange rate fluctuation is likely to affect results of this company.
However, the company boasts a highly productive network of over 100,000 agents. Number of agents is expected to rise by 5.5% to 6.0% over second-quarter 2016, driven by strong agent growth outside the U.S. and Canada. This should have positive impact on the second quarter results.
Earnings Whispers
Our proven model does not conclusively show that RE/MAX Holdings will beat 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: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, in this case respectively 43 cents and 44 cents, stands at -2.27%.
Zacks Rank: RE/MAX Holdings has a Zacks Rank #4 (Sell), As it is we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
RE/MAX HOLDINGS Price and EPS Surprise
RE/MAX HOLDINGS Price and EPS Surprise | RE/MAX HOLDINGS Quote
Stocks to Consider
Here are a few stocks in the real estate investment trust sector you may want to consider, as our model shows that they have the right combination of elements to post a positive surprise this quarter:
Ashford Hospitality Prime, Inc. has an Earnings ESP of +6.15% and a Zacks Rank #3. The company will report results on Aug 3.
EPR Properties (EPR - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3. The company will release results on Aug 3.
National Health Investors Inc. (NHI - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2. The company will report results on Aug 5.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>