Investors were fearing for the worse in Realogy's (H - Get Report) 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.