Marcus & Millichap (NYSE:MMI – Get Free Report) issued its quarterly earnings data on Thursday. The real estate investment trust reported $0.10 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.07, Zacks reports. The firm had revenue of $202.91 million during the quarter, compared to analyst estimates of $194.30 million. Marcus & Millichap had a return on equity of 2.97% and a net margin of 1.77%.
Here are the key takeaways from Marcus & Millichap’s conference call:
- Second-quarter revenue rose 18% year over year to $203 million, with growth across brokerage and financing. Net income improved to $4 million, or $0.10 per share, from an $11 million loss, while adjusted EBITDA increased to $12 million from $1.5 million.
- Activity broadened across the platform: private-client brokerage revenue increased 14%, middle-market revenue rose 13%, and larger transactions jumped 43%. Financing revenue grew 15%, with refinancings representing 47% of financing revenue versus 39% a year earlier.
- Management expects additional operating leverage as revenue recovers, citing disciplined costs, technology investments, and revenue above the approximately $755 million annual level that previously produced break-even results. SG&A declined as a percentage of revenue to 35% from 42% a year earlier.
- The commercial real estate recovery remains uneven: higher and volatile interest rates are extending transaction timelines, and third-quarter pipeline growth is expected to be modest. Management remains encouraged by narrowing bid-ask spreads, improved lender liquidity, and greater seller motivation.
- Marcus & Millichap returned capital through $24 million of share repurchases during the quarter and declared a $0.25 semiannual dividend, while retaining $345 million in cash and marketable securities. The company also highlighted potential expansion in leasing, appraisal, investment management, and financing, including possible acquisitions.
Marcus & Millichap Stock Down 0.6%
MMI stock traded down $0.20 during midday trading on Friday, hitting $31.50. The company’s stock had a trading volume of 118,020 shares, compared to its average volume of 126,666. The stock has a market cap of $1.19 billion, a price-to-earnings ratio of 85.12 and a beta of 1.23. The stock’s 50-day moving average price is $30.59 and its 200 day moving average price is $28.26. Marcus & Millichap has a 1 year low of $24.43 and a 1 year high of $33.62.
Marcus & Millichap Announces Dividend
Wall Street Analyst Weigh In
Several brokerages recently issued reports on MMI. Weiss Ratings cut Marcus & Millichap from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, May 11th. Wall Street Zen raised Marcus & Millichap from a “hold” rating to a “strong-buy” rating in a research report on Saturday. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat, the stock has a consensus rating of “Sell” and a consensus price target of $28.00.
Institutional Investors Weigh In On Marcus & Millichap
Hedge funds have recently made changes to their positions in the business. Kestra Advisory Services LLC bought a new position in Marcus & Millichap during the fourth quarter valued at about $30,000. Quantbot Technologies LP purchased a new position in Marcus & Millichap in the second quarter valued at about $137,000. Strs Ohio bought a new stake in shares of Marcus & Millichap in the 1st quarter worth approximately $145,000. Tower Research Capital LLC TRC raised its holdings in shares of Marcus & Millichap by 769.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,286 shares of the real estate investment trust’s stock worth $162,000 after purchasing an additional 4,678 shares during the period. Finally, Campbell & CO Investment Adviser LLC purchased a new position in Marcus & Millichap in the fourth quarter valued at approximately $200,000. 62.78% of the stock is currently owned by institutional investors.
Marcus & Millichap Company Profile
Marcus & Millichap (NYSE: MMI) is a leading commercial real estate brokerage firm focused on investment sales, financing, research and advisory services. Founded in 1971 by George M. Marcus and William A. Millichap, the company has grown to specialize in the marketing of multifamily, retail, office, industrial, hospitality and other commercial property types. Through an extensive network of investment specialists, Marcus & Millichap connects property owners and investors with tailored transactions across a range of asset classes.
The firm offers comprehensive capital markets solutions, including debt and equity placement, structured finance, and customized financing programs.
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