Real estate franchise company RE/MAX (NYSE:RMAX) will be announcing earnings results this Tuesday after market hours. Here’s what to expect.
RE/MAX beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $74.47 million, down 4.9% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations. It reported 146,126 agents, up 2% year on year.
Is RE/MAX a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RE/MAX’s revenue to decline 6.2% year on year to $73.63 million, a further deceleration from the 4.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RE/MAX has missed Wall Street’s revenue estimates four times over the last two years.
Looking at RE/MAX’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro’s revenues decreased 1.5% year on year, beating analysts’ expectations by 11.2%, and Levi’s reported revenues up 6.4%, topping estimates by 5.8%. Hasbro traded down 3.3% following the results while Levi’s was up 11.1%.
Read our full analysis of Hasbro’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 10.3% on average over the last month. RE/MAX is up 4.5% during the same time and is heading into earnings with an average analyst price target of $9 (compared to the current share price of $8.55).
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