The Real Brokerage Inc. (REAX) Reports Q2 Loss, Tops Revenue Estimates

Group 1: Earnings Performance - The Real Brokerage Inc. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, representing a 50% earnings surprise [1] - The company posted revenues of $340.78 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 29.06%, compared to $185.33 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - The Real Brokerage shares have increased approximately 241.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $293.68 million, and for the current fiscal year, it is -$0.17 on revenues of $1.02 billion [7] - The estimate revisions trend for The Real Brokerage is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Technology Services industry, to which The Real Brokerage belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]