RE/MAX Holdings (RMAX) Tops Q3 EPS by 3c; Lowers FY18 Revenue/Adj. EBITDA Guidance

RE/MAX Holdings (NYSE: RMAX) reported Q3 EPS of $0.65, $0.03 better than the analyst estimate of $0.62. Revenue for the quarter came in at $54.9 million versus the consensus estimate of $55.02 million.

"We are witnessing a larger-than-expected slowdown in home sales this fall, as homebuyers and sellers adapt to a shifting market," stated Adam Contos, RE/MAX Holdings Chief Executive Officer. "We believe market participants are adjusting to the changing market conditions – price appreciation, low inventory, and rising interest rates – and therefore this recalibration likely represents a temporary transition rather than a lasting trend. It varies by market, but our network is reporting more instances of homes taking longer to sell than in the recent past. It has generally been a seller's market for a while so we think a move toward greater equilibrium will be healthy for housing over the long run."

Contos continued, "Fortunately, in times like these, our differentiated model and competitive advantages stand out. For one thing, the quality and experience of our agents should help them adapt to current market conditions; many have seen and performed well in similar markets in the past. Second, we believe our agent-centric model is more insulated and resilient to sudden dips in transactions than more traditional broker-centric businesses. And third, our Motto Mortgage network continues to expand, which helps diversify revenueduring this period of lower agent-count growth and slower home sales. In fact, we recently sold our 100th Motto franchise, and reaching that milestone in under two years is a rare feat for a new franchise brand."

GUIDANCE:

RE/MAX Holdings sees FY2018 revenue of $210-213 million, versus the consensus of $215.38 million.

For earnings history and earnings-related data on RE/MAX Holdings (RMAX) click here.

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