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RE/MAX (RMAX) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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RE/MAX (RMAX - Free Report) reported $78.48 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 3.4%. EPS of $0.38 for the same period compares to $0.40 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $78.64 million, representing a surprise of -0.20%. The company delivered an EPS surprise of +5.56%, with the consensus EPS estimate being $0.36.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how RE/MAX performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Marketing Funds fees: $20.10 million versus the three-analyst average estimate of $19.83 million. The reported number represents a year-over-year change of -3.6%.
  • Revenue- Continuing franchise fees: $30.80 million versus the three-analyst average estimate of $31.03 million. The reported number represents a year-over-year change of -3.3%.
  • Revenue- Franchise sales and other revenue: $4.70 million versus $5.39 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -19.4% change.
  • Revenue- Broker fees: $14.92 million versus the three-analyst average estimate of $14.09 million. The reported number represents a year-over-year change of +4.6%.
  • Revenue- Annual dues: $7.97 million compared to the $8.29 million average estimate based on three analysts. The reported number represents a change of -5.8% year over year.
View all Key Company Metrics for RE/MAX here>>>

Shares of RE/MAX have returned -1.1% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

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