Realogy Holdings (RLGY) Tops Q3 EPS by 64c, Revenues Beat

Realogy Holdings (NYSE: RLGY) reported Q3 EPS of $1.36, $0.64 better than the analyst estimate of $0.72. Revenue for the quarter came in at $1.86 billion versus the consensus estimate of $1.64 billion.

Third Quarter 2020 Highlights

• Generated revenue of $1.9 billion, an increase of 20% or $307 million year-over-year.
• Reported Net income of $145 million from continuing operations and Net income of $98 million including discontinued operations.
• Generated Operating EBITDA from continuing operations of $309 million, an increase of $103 million year-over-year, driven by higher transaction volume and strong performance at the GRA mortgage JV (See Table 5a).
• Title and mortgage continued to contribute meaningfully to our business results, generating approximately $95 million in third quarter Operating EBITDA.
• Combined closed transaction volume increased 28% year-over-year in the third quarter with improving transaction volume through the quarter. Unit growth contributed 12% to this volume improvement across both Brokerage and Franchise businesses.
• Generated Free Cash Flow from continuing operations of $344 million vs. $116 million for the corresponding quarter last year and $395 million including discontinued operations vs. $174 million for the corresponding quarter last year (See Table 7).
• Strengthened the balance sheet reducing net debt by $276 million vs. third quarter 2019 with the Net Debt Leverage Ratio declining to 4.2x (See Table 8b).
• Grew Brokerage agents 2% year-over-year with continued improving retention.

"I am incredibly proud of Realogy's third quarter. We generated $309 million of Operating EBITDA, grew closed transaction volume 28%, gained market share, and materially reduced our debt," said Ryan Schneider, Realogy's chief executive officer and president. "Our strategic progress, agent and brand power, and technology initiatives, amplified by the very strong housing market, drove Realogy's results. And with very strong preliminary October volumes, we are excited as we look ahead."

"In the third quarter, Realogy continued to execute from a position of strength, delivering exceptional top-line and bottom-line growth," said Charlotte Simonelli, Realogy's executive vice president, chief financial officer and treasurer. "We improved operating margins, captured greater share of transaction economics with our mortgage joint venture and title operations, stayed laser focused on cost management and simplification, and strengthened our balance sheet. Overall, Realogy's financial profile is much stronger today, and I am optimistic for our future."

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

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