Q1 Recap: Benchmarking Zillow (NASDAQ:ZG) and the Real Estate Services Stocks

Zillow (NASDAQ:ZG) reported Q1 revenues of $598 million, up 13% YoY, exceeding analysts' expectations. The stock is up 17.3% since reporting and currently trades at $77.87. The 13 real estate services stocks tracked reported strong Q1 results, with revenues beating analysts' consensus estimates by 2%. Share prices are up 47.4% on average since the latest earnings results.

Zillow (NASDAQ:ZG) reported Q1 revenues of $598 million, up 13% year-over-year (YoY), exceeding analysts' expectations. The stock is up 17.3% since reporting and currently trades at $77.87 [1]. The 13 real estate services stocks tracked reported strong Q1 results, with revenues beating analysts' consensus estimates by 2%. Share prices are up 47.4% on average since the latest earnings results [1].

Zillow, founded by Expedia co-founders Lloyd Frink and Rich Barton, is the leading U.S. online real estate marketplace. The company reported revenues of $598 million, up 13% YoY, exceeding analysts' expectations by 1.4%. Zillow also beat analysts' adjusted operating income estimates and EBITDA estimates, making it a very strong quarter for the company. Interestingly, the stock is up 17.3% since reporting and currently trades at $77.87 [1].

The Real Brokerage (NASDAQ:REAX), a technology-driven real estate brokerage firm, reported revenues of $354 million, up 76.3% YoY, outperforming analysts' expectations by 6.3%. The business had a stunning quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The Real Brokerage scored the fastest revenue growth among its peers. However, the stock is down 1.8% since reporting and currently trades at $4.38 [1].

eXp World (NASDAQ:EXPI), known for its virtual, cloud-based approach to real estate brokerage, reported revenues of $954.9 million, up 1.3% YoY, falling short of analysts' expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income estimates and a significant miss of analysts' EBITDA estimates. Interestingly, the stock is up 30.3% since the results and currently trades at $11.30 [1].

Compass (NYSE:COMP), a digital-first company operating a residential real estate brokerage in the United States, reported revenues of $1.36 billion, up 28.7% YoY. This result lagged analysts' expectations by 4.6%. Overall, it was a softer quarter as it also logged a significant miss of analysts' adjusted operating income estimates and a significant miss of analysts' EPS estimates. Compass had the weakest performance against analyst estimates among its peers. The stock is down 5.2% since reporting and currently trades at $7.31 [1].

Newmark (NASDAQ:NMRK), a commercial real estate services provider, reported revenues of $665.5 million, up 21.8% YoY. This print surpassed analysts' expectations by 8.9%. It was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EPS estimates. Newmark had the weakest full-year guidance update among its peers. The stock is up 18.3% since reporting and currently trades at $13.07 [1].

The market update indicates that the Fed's rate hikes in 2022 and 2023 have helped inflation come down from frothy levels post-pandemic, with the general rise in the price of goods and services trending towards the Fed's 2% goal. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024), has led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025 [1].

References:
[1] https://finance.yahoo.com/news/real-estate-services-stocks-q1-033105853.html