Realogy Holdings (RLGY) Misses Q3 EPS by 20c, Revenues Miss

Realogy Holdings (NYSE: RLGY) reported Q3 EPS of $0.65, $0.20 worse than the analyst estimate of $0.85. Revenue for the quarter came in at $1.63 billion versus the consensus estimate of $1.66 billion.

"In the third quarter of 2019, we leveraged the strength of Realogy's size, scale and brands to grow our agent base, launch three new high impact products, and introduce two new high-quality lead generation programs," said Ryan Schneider, Realogy's chief executive officer and president. "We are energized by our new products and partnerships, which we believe will win more listings, attract more agents and franchisees, and drive growth."

"We delivered Operating EBITDA, generated positive free cash flow, reduced debt, and executed new cost efficiency programs which will generate incremental savings in 2019 and 2020,\" said Charlotte Simonelli, Realogy\'s executive vice president, chief financial officer and treasurer. \"We are positioning Realogy for improving financial and operational performance and remain resolute in our goal to reduce leverage."

Third Quarter 2019 Highlights

• Generated Revenue of $1.6 billion.
• Reported a net loss of $70 million, driven by a $180 million impairment at NRT, and Adjusted net income of $74 million (See Table 1a).
• Generated Operating EBITDA of $223 million (See Table 4a).
• Tracking to achieve $70 million of realized cost savings with 80% of the actions already completed. Through Q3 2019, $44 million of the $70 million in cost savings have been realized.
• Generated Free Cash Flow of $174 million during the third quarter (See Table 6).
• Reduced net debt by $163 million from June 30, 2019 (See Table 7b).
• Continued moderation in commission split pressure, up only 47 basis points year-over-year.
• Grew the NRT agent base by approximately 3% year-to-date to 51,600 in the third quarter of 2019.
• Executed three new high impact product launches with RealSure, RealVitalize and Exclusive Look.
• Expanded high-quality lead generation opportunities with the Realogy Military Rewards program and a partnership with AARP that will launch in Q1 2020.

For earnings history and earnings-related data on Realogy Holdings (RLGY) click here.

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