RE/MAX (NYSE:RMAX) Announces Earnings Results, Misses Estimates By $0.05 EPS

Key Points

• RE/MAX missed quarterly expectations: The company reported adjusted earnings of $0.32 per share versus analyst estimates of $0.37, while revenue of $51.72 million fell well short of the $72.80 million consensus.
• Profitability remained weak: RE/MAX posted a negative net margin of 3.04% and negative return on equity of 88.46%.
• Shares rose despite the earnings miss: The stock gained $0.59 to $11.36, while analysts maintained a consensus “Hold” rating and an average price target of $13.80.

RE/MAX (NYSE:RMAX - Get Free Report) released its quarterly earnings data on Thursday. The financial services provider reported $0.32 earnings per share for the quarter, missing analysts' consensus estimates of $0.37 by ($0.05), FiscalAI reports. RE/MAX had a negative net margin of 3.04% and a negative return on equity of 88.46%. The business had revenue of $51.72 million during the quarter, compared to analysts' expectations of $72.80 million.

RE/MAX Stock Performance

RE/MAX stock traded up $0.59 during midday trading on Friday, reaching $11.36. 711,915 shares of the stock were exchanged, compared to its average volume of 397,681. The company's fifty day moving average is $9.99 and its 200-day moving average is $8.30. The firm has a market cap of $241.17 million, a PE ratio of 14.36 and a beta of 1.82. RE/MAX has a 52 week low of $5.46 and a 52 week high of $11.81.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on RMAX shares. Weiss Ratings reaffirmed a "sell (d)" rating on shares of RE/MAX in a report on Friday, July 24th. JonesTrading upgraded RE/MAX from a "hold" rating to a "buy" rating and set a $13.80 price objective on the stock in a research note on Monday, April 27th. One analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $13.80.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RMAX. Strs Ohio bought a new position in shares of RE/MAX in the first quarter worth $30,000. IFC & Insurance Marketing Inc. bought a new stake in RE/MAX during the fourth quarter valued at $76,000. Sei Investments Co. purchased a new position in RE/MAX during the second quarter worth about $86,000. Squarepoint Ops LLC purchased a new position in RE/MAX during the third quarter worth about $127,000. Finally, B. Riley Wealth Advisors Inc. bought a new position in RE/MAX in the 2nd quarter worth about $110,000. 93.17% of the stock is owned by institutional investors.

RE/MAX Company Profile

RE/MAX Holdings, Inc NYSE: RMAX is a global franchisor of real estate brokerage services, offering residential and commercial property transaction support through a network of independently owned and operated offices. The company provides marketing, training, technology platforms and brand recognition for its affiliated agents, facilitating property buying, selling and leasing activities. In addition to core brokerage services, RE/MAX offers ancillary solutions such as mortgage referral, title and escrow coordination, relocation assistance and luxury market specialization.

Established in 1973 by David and Gail Liniger in Denver, Colorado, RE/MAX pioneered a high-commission, agent-driven model designed to attract experienced real estate professionals.

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