Realogy Meets Tempered Views
Investors were fearing for the worse in Realogy's (H) third-quarter earnings report. But the residential brokerage firm hit earnings estimates and maintained its guidance for the remainder of the year.
Realogy, which owns several notable franchises such as Coldwell Banker and Sotheby's International Realty, earned $87 million, or 34 cents a share in the third quarter. That was down sharply from earnings of $227 million, or 91 cents a share, a year earlier, reflecting the slowdown in U.S. home sales.
Adjusting for certain items, the company earned 52 cents a share, matching analysts' average estimate, according to Thomson First Call.
Revenue fell 16% to $1.73 billion, within the range that management had forecast.Realogy reiterated its full-year guidance, which it lowered in August, for revenue of $6.4 million to $6.7 billion and adjusted earnings of $1.44 to $1.76 per share. After hitting a 52-week high of $27.67 last week, Realogy shares have since fallen 11% as investors cashed out some profits fearing that the company might report an ugly quarter. Earnings were released after the market closed Wednesday. The stock closed down 4.4%, or $1.13, to $24.65 during the regular session. Realogy was spun off from the conglomerate formerly known as Cendant this summer at $26 per share. The stock later plunged below $20 but eventually rebounded over the past month, helped by a 37 million share tender completed in October.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV