RMAX Earnings Prediction
The chart below shows how RMAX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RMAX sees a +2.09% change in stock price 10 days leading up to the earnings, and a +2.35% change 10 days following the report. On the earnings day itself, the stock moves by -0.49%. This data can give you a slight idea of what to expect for the next quarter's release.
RMAX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
72.47M
-5.40%
-7.66%
Gross Margin
--
--
--
Operating Margin
15.14%
33.27%
-21.88%
Net Margin
5.63%
123.47%
29.43%
EPS
0.29
148.33%
480.00%
No Data Available
RMAX Earnings Analysis
Re/Max Holdings Inc Corporation (RMAX.N) Earnings Conference Call
Positive
Strong Margin Performance: Operational efficiency has led to strong margin and bottom-line results, with better-than-anticipated profit performance for the third consecutive quarter.
Global Agent Growth: International agent count increased almost 9% year-over-year, with over 70,000 agents outside the US and Canada for the first time, demonstrating significant growth in global presence.
RE/MAX Market Leadership: In Canada, RE/MAX remains the industry leader with over 25,000 agents, showcasing strong brand strength in a key market.
Innovative Customer Experience Initiatives: The company has launched innovative initiatives like Lead Concierge and RE/MAX Media Network, which are expected to enhance customer experience and generate significant revenue.
Expense Management Success: Diligent expense management resulted in a decrease in selling, operating, and administrative expenses by 8.6%, contributing to improved financial performance.
Adjusted EBITDA Performance: Adjusted EBITDA increased to $23.3 million, up almost 2% over Q4 of last year, with an adjusted EBITDA margin of 32.2%, reflecting strong operational efficiency.
Strategic Reinvestment and Growth: The company is prioritizing strategic reinvestment and plans to resume a modest level of stock repurchases, indicating confidence in future growth.
Leadership Team Enhancement: The addition of experienced executives Chris Lynn and Travis Saxon to the leadership team is expected to enhance growth and operational strategies.
Negative
Agent Count Decline: Agent count in the US experienced a decline, which is typical at year-end, indicating potential challenges in retaining agents.
Revenue Decline Analysis: Total revenue decreased by 3.9% compared to the same period last year, driven by negative organic growth of 3.5% and adverse foreign currency movements of 0.4%.
Litigation Settlement Impact: The company is facing litigation issues, having agreed to settle two industry class action lawsuits in Canada for approximately $5.5 million, which may impact financial resources and reputation.
Agent Count Outlook: The outlook for 2025 indicates a potential decline in agent count, with expectations ranging from negative 1% to positive 1% over the full year 2024, suggesting uncertainty in growth.
Revenue Decline Concerns: Despite improved margins and profit performance, the overall revenue decline raises concerns about the company's ability to sustain growth in a challenging market.
RMAX FAQs
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RMAX Earning Call Sentiment
RE/MAX Holdings, Inc. (NYSE:RMAX) Q4 2024 Earnings Call Transcript
RMAX.N
-1.55%Positive
The earnings call presents a mixed picture. Financial performance shows a slight revenue decline but improved EBITDA and cost management. The Q&A reveals optimism about new initiatives and revenue streams, yet concerns about US agent attrition and vague responses on revenue opportunities. The stock repurchase program and positive adjusted EBITDA margin are favorable, but negative organic growth and legal settlements pose risks. Overall, the sentiment is neutral, with balanced positives and negatives.
