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Real Estate Companies Queued for Q2 Earnings: JOE, MMI
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We are in the final stretch of the Q2 earnings season. However, the real estate industry is still buzzing with earnings releases, and Marcus & Millichap, Inc. (MMI - Free Report) and The St. Joe Company (JOE - Free Report) are queued up to report next.
While Marcus is scheduled to report its Q2 results after the closing bell on Aug 4, St. Joe, too, is expected to report its quarterly numbers on the same day.
Performance of the real estate companies highly depends on the health of the economy. Though occurring at a modest pace, recovery of the economy has been stable. Fundamentals of the real estate market have also remained decent in recent times.
Yet, lately, a cautious sentiment has been the dominant theme among buyers, after steady expansion in the industry over the years. In fact, the adoption of this approach by buyers and lenders is delaying companies in closing deals. This is anticipated to add variability to the performance of these companies for the quarter to be reported.
However, not every real estate company is equally poised to beat earnings this season. Hence, we relied on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.
Our proprietary methodology – Earnings ESP – shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Let’s take a look at what’s in store for the two real estate companies this earnings season.
Based in WaterSound, FL, The St. Joe Company is a real estate development and operating company, with its assets and operations concentrated primarily between Tallahassee and Destin. The company utilizes these assets for residential or commercial real estate developments, resorts, leisure and leasing operations as well as forestry operations, on a limited basis. St. Joe has an Earnings ESP of 0.00% and a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the stock’s zero ESP makes surprise prediction difficult.
Marcus & Millichap – headquartered in Calabasas, CA – is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. The company has expertise in core property types of multifamily, retail, office and industrial. Marcus & Millichap, too, has an Earnings ESP of 0.00% and a Zacks Rank #3. Therefore, it also lacks the criteria for a beat this quarter, according to our model.
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Real Estate Companies Queued for Q2 Earnings: JOE, MMI
We are in the final stretch of the Q2 earnings season. However, the real estate industry is still buzzing with earnings releases, and Marcus & Millichap, Inc. (MMI - Free Report) and The St. Joe Company (JOE - Free Report) are queued up to report next.
While Marcus is scheduled to report its Q2 results after the closing bell on Aug 4, St. Joe, too, is expected to report its quarterly numbers on the same day.
Performance of the real estate companies highly depends on the health of the economy. Though occurring at a modest pace, recovery of the economy has been stable. Fundamentals of the real estate market have also remained decent in recent times.
Yet, lately, a cautious sentiment has been the dominant theme among buyers, after steady expansion in the industry over the years. In fact, the adoption of this approach by buyers and lenders is delaying companies in closing deals. This is anticipated to add variability to the performance of these companies for the quarter to be reported.
However, not every real estate company is equally poised to beat earnings this season. Hence, we relied on the Zacks methodology, combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.
Our proprietary methodology – Earnings ESP – shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Let’s take a look at what’s in store for the two real estate companies this earnings season.
Based in WaterSound, FL, The St. Joe Company is a real estate development and operating company, with its assets and operations concentrated primarily between Tallahassee and Destin. The company utilizes these assets for residential or commercial real estate developments, resorts, leisure and leasing operations as well as forestry operations, on a limited basis. St. Joe has an Earnings ESP of 0.00% and a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the stock’s zero ESP makes surprise prediction difficult.
ST JOE CO Price and EPS Surprise
ST JOE CO Price and EPS Surprise | ST JOE CO Quote
Marcus & Millichap – headquartered in Calabasas, CA – is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. The company has expertise in core property types of multifamily, retail, office and industrial. Marcus & Millichap, too, has an Earnings ESP of 0.00% and a Zacks Rank #3. Therefore, it also lacks the criteria for a beat this quarter, according to our model.
MARCUS&MILLICHP Price and EPS Surprise
MARCUS&MILLICHP Price and EPS Surprise | MARCUS&MILLICHP Quote
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