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RE/MAX Holdings (RMAX) Q1 Earnings: What's in the Cards?

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Real estate operations firm RE/MAX Holdings, Inc. (RMAX - Free Report) is expected to report first-quarter 2017 results on May 4, after the market closes.

In the last three months, shares of the company increased 7.1%.

The company delivered a positive earnings surprise of 10.81% in the preceding quarter. In fact, the company beat estimates in each of the trailing four quarters with an average positive surprise of 9.19%.

Let’s see how things are shaping up for this announcement.

Factors to Consider

Denver, CO-based RE/MAX Holdings is a leading franchisor of real estate brokerage services with an enviable global footprint. The company enjoys a steady fee-based revenue model with robust cash flow and margins.

RE/MAX Holdings boasts a highly-productive network of over 110,000 agents. Number of agents is expected to rise by 5.5–6.5% in first-quarter 2017 on a year-over-year basis, driven by strong agent growth outside the U.S. and Canada. This should have positive impact on the results.

Earnings Whispers

Our proven model does not conclusively show that RE/MAX Holdings will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: RE/MAX Holdings has an Earnings ESP of 0.00%, as both the Most Accurate estimate and the Zacks Consensus Estimate currently stand at 39 cents.

Zacks Rank: RE/MAX Holdings’ Zacks Rank #2 increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks That Warrant a Look

Here are a few stocks from the finance sector that you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Saul Centers Inc. (BFS - Free Report) , expected to release earnings on May 4, has an Earnings ESP of +5.81% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Realogy Holdings Corp. , expected to release first-quarter results on May 4, has an Earnings ESP of +10.53% and a Zacks Rank #3.

Hudson Pacific Properties, Inc. (HPP - Free Report) , expected to release first-quarter results on May 4, has an Earnings ESP of +2.08% and a Zacks Rank #3.

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