Yahoo Finance Anywhere Real Estate (NYSE:HOUS) Reports Sales Below Analyst Estimates In Q2 Earnings
Residential real estate services company Anywhere Real Estate (NYSE:HOUS) fell short of analysts' expectations in Q2 CY2024, with revenue flat year on year at $1.67 billion. It made a GAAP profit of $0.27 per share, improving from its profit of $0.17 per share in the same quarter last year.
Is now the time to buy Anywhere Real Estate? Find out in our full research report.
Anywhere Real Estate (HOUS) Q2 CY2024 Highlights:
Revenue: $1.67 billion vs analyst estimates of $1.69 billion (1.3% miss)
EPS: $0.27 vs analyst expectations of $0.33 (18.9% miss)
Gross Margin (GAAP): 33.6%, down from 34.6% in the same quarter last year
Free Cash Flow of $63 million is up from -$145 million in the previous quarter
Market Capitalization: $524.4 million
"Anywhere leveraged our distinct advantages to deliver strong results in the quarter, accelerating our transformation and building our future financial octane," said Ryan Schneider, Anywhere president and CEO.
Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.
Real Estate Services
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Sales Growth
A company’s long-term performance can give signals about its business quality. Even a bad business can shine for one or two quarters, but a top-tier one tends to grow for years. Anywhere Real Estate struggled to generate demand over the last five years as its sales were flat. This is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or emerging trend. Anywhere Real Estate's recent history shows its demand has stayed suppressed as its revenue has declined by 15.8% annually over the last two years.
This quarter, Anywhere Real Estate missed Wall Street's estimates and reported a rather uninspiring 0.1% year-on-year revenue decline, generating $1.67 billion of revenue. Looking ahead, Wall Street expects sales to grow 10.6% over the next 12 months, an acceleration from this quarter.
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Cash Is King
If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills.
Anywhere Real Estate broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders.
Anywhere Real Estate's free cash flow clocked in at $63 million in Q2, equivalent to a 3.8% margin. The company's cash profitability regressed as it was 2.5 percentage points lower than in the same quarter last year, but it's still above its two-year average. We wouldn't read too much into this quarter's decline because investment needs can be seasonal, causing short-term swings. Long-term trends trump temporary fluctuations.
Key Takeaways from Anywhere Real Estate's Q2 Results
We struggled to find many strong positives in these results. Its EPS missed and its revenue fell short of Wall Street's estimates. Overall, this was a bad quarter for Anywhere Real Estate. The stock remained flat at $4.72 immediately following the results.
So should you invest in Anywhere Real Estate right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
