Winners And Losers Of Q1: Zillow (NASDAQ:ZG) Vs The Rest Of The Real Estate Services Stocks
Looking back on real estate services stocks' Q1 earnings, we examine this quarter's best and worst performers, including Zillow (NASDAQ:ZG) and its peers.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 14 real estate services stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.2%. while next quarter's revenue guidance was 4% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but real estate services stocks have performed well, with the share prices up 18.2% on average since the previous earnings results.
Zillow (NASDAQ:ZG)
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.
Zillow reported revenues of $529 million, up 12.8% year on year, exceeding analysts' expectations by 4.1%. Despite the top-line beat, it was a weaker quarter overall for the company with a miss of analysts' earnings estimates and a miss of analysts' monthly active users estimates.
The stock is up 19.7% since reporting and currently trades at $49.58.
Read our full report on Zillow here, it's free.
Best Q1: JLL (NYSE:JLL)
Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.
JLL reported revenues of $5.12 billion, up 8.7% year on year, outperforming analysts' expectations by 6.4%. It was a stunning quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Capital Markets revenue estimates.
The market seems happy with the results as the stock is up 25.2% since reporting. It currently trades at $231.92.
Is now the time to buy JLL? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Anywhere Real Estate (NYSE:HOUS)
Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.
Anywhere Real Estate reported revenues of $1.13 billion, flat year on year, falling short of analysts' expectations by 1.8%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Anywhere Real Estate had the weakest performance against analyst estimates in the group. As expected, the stock is down 16.4% since the results and currently trades at $4.53.
Read our full analysis of Anywhere Real Estate's results here.
Compass (NYSE:COMP)
Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.
Compass reported revenues of $1.05 billion, up 10.1% year on year, surpassing analysts' expectations by 2.2%. Zooming out, it was a mixed quarter for the company with revenue guidance for next quarter beating analysts' expectations but a miss of analysts' earnings estimates.
The stock is up 36% since reporting and currently trades at $4.46.
Read our full, actionable report on Compass here, it's free.
CBRE (NYSE:CBRE)
Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.
CBRE reported revenues of $7.94 billion, up 7.1% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 11.8% since reporting and currently trades at $97.08.
Read our full, actionable report on CBRE here, it's free.
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