Marcus & Millichap (NYSE:MMI – Get Free Report) announced its quarterly earnings data on Friday. The real estate investment trust reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.03), FiscalAI reports. Marcus & Millichap had a return on equity of 2.97% and a net margin of 1.77%. The firm had revenue of $208.37 million for the quarter, compared to analysts’ expectations of $205.05 million.
Here are the key takeaways from Marcus & Millichap’s conference call:
- Revenue and adjusted profitability improved: Q3 revenue rose 7.5% to $208 million, led by 17% growth in Middle Market brokerage and 20% growth in larger transactions. Adjusted EBITDA increased to $8.2 million from $6.9 million a year ago, while year-to-date adjusted EBITDA reached $23.3 million versus a loss in the prior-year period.
- Interest-rate volatility is weighing on deal execution and near-term expectations. Brokerage transactions were essentially flat despite higher total volume, and management said rate swings are widening bid-ask spreads and slowing sales; it expects Q4 sequential revenue growth but remains cautious against a stronger prior-year comparison.
- Management sees a larger potential transaction pipeline heading into 2027. It cited more realistic seller pricing, increased lender engagement around troubled assets, and substantial 2027–2028 loan maturities, while cautioning that deals still depend on buyers, sellers, and lenders reaching agreement on price.
- Growth initiatives will add costs before they contribute meaningfully to revenue. The company expects incremental spending of about 1%–2% of revenue over the next 18–24 months on technology and strategic hires, and said its leasing initiative is not expected to generate meaningful revenue in 2027.
Marcus & Millichap Stock Performance
NYSE:MMI traded down $1.04 during mid-day trading on Friday, hitting $27.62. 228,794 shares of the company’s stock traded hands, compared to its average volume of 215,367. Marcus & Millichap has a 1 year low of $24.43 and a 1 year high of $33.55. The company has a market cap of $1.05 billion, a PE ratio of 74.65 and a beta of 1.25. The firm’s 50 day simple moving average is $29.42 and its 200 day simple moving average is $28.78.
Analysts Set New Price Targets
Several research firms have issued reports on MMI. Weiss Ratings upgraded Marcus & Millichap from a “sell (d)” rating to a “hold (c-)” rating in a research report on Friday, August 21st. Wall Street Zen cut Marcus & Millichap from a “strong-buy” rating to a “buy” rating in a research report on Saturday, September 5th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus price target of $28.00.
View Our Latest Analysis on Marcus & Millichap
About Marcus & Millichap
Marcus & Millichap, Inc is a commercial real estate brokerage company that specializes in investment sales, financing and advisory services. The company serves owners and investors in a range of property sectors, including multifamily, office, retail, industrial, self-storage, hospitality and land.
Through its brokerage professionals and investment banking platform, Marcus & Millichap helps clients market and acquire commercial properties, arrange financing and evaluate real estate investment opportunities.
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