Core Insights - RE/MAX reported revenue of $78.48 million for Q3 2024, a year-over-year decline of 3.4%, with EPS of $0.38 compared to $0.40 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $78.64 million, resulting in a surprise of -0.20%, while the EPS exceeded the consensus estimate of $0.36 by 5.56% [1] Revenue Breakdown - Marketing Funds fees revenue was $20.10 million, exceeding the average estimate of $19.83 million, but reflecting a year-over-year decline of 3.6% [3] - Continuing franchise fees revenue was $30.80 million, slightly below the average estimate of $31.03 million, with a year-over-year decline of 3.3% [3] - Franchise sales and other revenue was reported at $4.70 million, significantly lower than the estimated $5.39 million, marking a year-over-year decline of 19.4% [3] - Broker fees revenue reached $14.92 million, surpassing the average estimate of $14.09 million, with a year-over-year increase of 4.6% [3] - Annual dues revenue was $7.97 million, below the average estimate of $8.29 million, reflecting a year-over-year decline of 5.8% [3] Stock Performance - Over the past month, RE/MAX shares have returned -1.1%, contrasting with the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential outperformance against the broader market in the near term [4]

Core Viewpoint - RE/MAX reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.40 per share a year ago, indicating a 5.56% earnings surprise [1][2] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - RE/MAX's revenues for the quarter ended September 2024 were $78.48 million, missing the Zacks Consensus Estimate by 0.20%, and down from $81.22 million year-over-year [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Group 2: Stock Performance and Outlook - RE/MAX shares have declined approximately 7.7% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.29 on revenues of $76.17 million, and $1.28 on revenues of $311.4 million for the current fiscal year [7] Group 3: Industry Context - The Real Estate - Operations industry, to which RE/MAX belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Revenue Performance - Total revenue for Q3 2024 was $78.5 million, a decrease of 3.4% compared to $81.2 million in Q3 2023[1][4] - Revenue excluding Marketing Funds was $58.4 million, down 3.3% year-over-year, driven by negative organic growth of 3.0% and adverse foreign currency movements of 0.3%[1][4] - The company expects Q4 2024 revenue in the range of $71.0 million to $76.0 million, including Marketing Funds revenue of $18.5 million to $20.5 million[1][15] - For the full year 2024, revenue is expected to be between $306.0 million and $311.0 million, revised from previous estimates[1][16] - Continuing franchise fees decreased to $30,798,000 in Q3 2024 from $31,834,000 in Q3 2023, representing a decline of 3.2%[25] Profitability - Adjusted EBITDA increased by 2.0% to $27.3 million, with an Adjusted EBITDA margin of 34.8%[1][9] - Operating income for Q3 2024 was $15,211,000, compared to an operating loss of $20,998,000 in Q3 2023[25] - Net income attributable to RE/MAX Holdings was $1.0 million, compared to a net loss of $59.5 million in Q3 2023[1][8] - The company reported a basic earnings per share of $0.05 for Q3 2024, compared to a loss per share of $(3.28) in Q3 2023[26] - Net income for the nine months ended September 30, 2024, was $3,997 thousand, a significant improvement from a net loss of $80,107 thousand for the same period in 2023[28] Expenses and Liabilities - Total operating expenses decreased by 38.1% to $63.3 million, primarily due to a $55.0 million settlement recorded in Q3 2023[1][6] - Total liabilities decreased to $640,412,000 as of September 30, 2024, down from $653,211,000 at the end of 2023[27] Agent Count and Market Presence - Total agent count increased by 174 agents, or 0.1%, to 145,483 agents, while U.S. and Canada combined agent count decreased by 4.4% to 78,201 agents[1][3] - The total agent count in the U.S. and Canada decreased to 78,201 as of September 30, 2024, down from 81,782 a year earlier, indicating a decline of approximately 4.5%[29] - The company reported a total of 67,282 agents outside the U.S. and Canada as of September 30, 2024, an increase from 63,527 a year earlier, marking a growth of approximately 5.5%[29] Cash Flow and Financial Health - Cash provided by operating activities for the nine months ended September 30, 2024, was $42,867 thousand, compared to $19,625 thousand for the same period in 2023, representing a year-over-year increase of 118.4%[28] - The company’s cash, cash equivalents, and restricted cash increased to $156,378 thousand as of September 30, 2024, compared to $120,813 thousand at the end of the previous year[28] - Total cash flow from operations for September 2024 was $42,867,000, compared to $19,625,000 in September 2023, representing a significant increase of 118.4%[34] Future Outlook and Strategy - The company is optimistic about future interest rates and plans to enhance technology and customer experience[23] - RE/MAX Holdings is focused on operational efficiencies and business optimization to improve customer experience[23] - The company aims to finish the year with positive momentum and is exploring new revenue opportunities[23] Adjusted Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $27,290 thousand, compared to $26,748 thousand for the same period in 2023, reflecting an adjusted EBITDA margin of 34.8%[30] - Adjusted free cash flow for September 2024 was $35,087,000, up from $27,598,000 in September 2023, indicating a growth of 27.1%[34] - Adjusted free cash flow as a percentage of Adjusted EBITDA was 47.2% in September 2024, compared to 37.6% in September 2023, indicating improved efficiency[34]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, incl ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: RE/MAX (RMAX) Analysis - RE/MAX (RMAX) has shown a four-week price change of 2.4%, indicating growing investor interest [4] - Over the past 12 weeks, RMAX stock has gained 49.5%, with a beta of 1.37, suggesting it moves 37% more than the market [5] - RMAX has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings and Valuation - RMAX has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors and drive prices higher [7] - The stock is currently trading at a Price-to-Sales ratio of 0.73, suggesting it is undervalued at 73 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides RMAX, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify winning stock picks based on various investing styles [9]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional va ...

RE/MAX (RMAX) shares rallied 17.3% in the last trading session to close at $12.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.6% gain over the past four weeks. The increased investor optimism in the stock can be attributed to the favorable operating environment. This franchisor of residential real estate brokerages is expected to post quarterly earnings of $0.35 per share in its upcoming report, which ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fu ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

RE/MAX (RMAX) reported $78.45 million in revenue for the quarter ended June 2024, representing a yearover-year decline of 4.9%. EPS of $0.41 for the same period compares to $0.40 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $78.16 million, representing a surprise of +0.37%. The company delivered an EPS surprise of +17.14%, with the consensus EPS estimate being $0.35. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...