Marcus & Millichap (MMI) Earnings Preview: What to Expect on November 8th

## Marcus & Millichap (MMI) Earnings Preview: What to Expect on November 8th

The commercial real estate market is eagerly awaiting Marcus & Millichap’s (MMI) quarterly earnings release, scheduled for Friday, November 8th. This report will provide valuable insights into the company’s performance and offer clues about its future trajectory. Here’s a detailed look at what investors should keep in mind before the announcement.

Analyst Expectations and Key Metrics

Analysts are projecting an earnings per share (EPS) of -$0.19 for the quarter. However, bulls are hoping for a beat on that estimate, accompanied by positive guidance for the upcoming quarter. Remember, it’s not just the earnings beat or miss that drives stock prices, but also the company’s outlook for the future.

Historical Performance and Stock Price Trends

Last quarter, Marcus & Millichap exceeded EPS expectations by $0.01, resulting in a 1.56% increase in the share price the next day. Here’s a quick overview of their past performance and its impact on stock price:

| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | -$0.15 | -$0.14 | 2.0% |
| Q1 2024 | -$0.28 | -$0.26 | 2.0% |
| Q4 2023 | -$0.28 | -$0.27 | -1.0% |
| Q3 2023 | -$0.26 | -$0.24 | 7.00% |

As of November 6th, Marcus & Millichap shares were trading at $40.27. Over the past 52 weeks, shares have climbed 36.17%, suggesting a bullish sentiment among long-term shareholders.

Analyst Insights and Peer Comparisons

For investors, staying informed about market sentiment and industry expectations is crucial. Here’s a breakdown of the latest analyst insights on Marcus & Millichap and its peers:

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Marcus & Millichap:

The consensus rating is

Underperform

, based on 1 analyst rating. The average one-year price target of $30.00 implies a potential 25.5% downside.

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RE/MAX Hldgs:

Analysts favor a

Neutral

trajectory with an average one-year price target of $10.50, suggesting a potential 73.93% downside.

*

Offerpad Solutions:

Analysts project a

Neutral

trajectory with an average one-year price target of $3.08, indicating a potential 92.35% downside.

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Fathom Holdings:

Analysts are leaning towards an

Outperform

trajectory with an average one-year price target of $2.50, suggesting a potential 93.79% downside.

Peer Analysis Summary:

| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Marcus & Millichap | Underperform | -2.76% | $60.29M | -0.88% |
| RE/MAX Hldgs | Neutral | -3.38% | $58.38M | 0.23% |
| Offerpad Solutions | Neutral | -11.17% | $17.14M | -19.03% |
| Fathom Holdings | Outperform | -10.87% | $11.16M | -2.46% |

Key Takeaway:

Marcus & Millichap leads its peers in revenue growth and gross profit. However, it falls behind in return on equity.

Discovering Marcus & Millichap: A Closer Look

Marcus & Millichap is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research, and advisory services. The company offers three core services to its clients:

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Commercial real estate investment brokerage:

This involves facilitating the buying and selling of commercial properties.

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Financing:

Marcus & Millichap assists clients in securing loans for commercial real estate investments.

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Ancillary services:

The company provides a range of additional services, including research, advisory, and consulting.

Financial Insights: A Deep Dive

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Market Capitalization:

Marcus & Millichap’s market capitalization is positioned below industry averages, potentially reflecting its smaller scale, growth expectations, or operational capacity.

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Revenue Challenges:

The company’s revenue growth over 3 months has faced challenges. As of June 30th, 2024, they experienced a decline of approximately -2.76%. This indicates a decrease in top-line earnings and lags behind its peers in the Real Estate sector.

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Net Margin:

Marcus & Millichap’s net margin is below industry averages, potentially signaling challenges in maintaining strong profitability. With a net margin of -3.5%, the company may face hurdles in managing costs effectively.

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Return on Equity (ROE):

Marcus & Millichap’s ROE stands out, surpassing industry averages. With an impressive ROE of -0.88%, the company demonstrates efficient use of equity capital and strong financial performance.

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Return on Assets (ROA):

Marcus & Millichap’s ROA exceeds industry benchmarks, reaching -0.67%. This signifies efficient asset management and strong financial health.

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Debt Management:

Marcus & Millichap’s debt-to-equity ratio is below the industry average. With a ratio of 0.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To stay updated on all earnings releases for Marcus & Millichap, visit their earnings calendar on our site.