NEW YORK (TheStreet) -- Realogy Holdings (RLGY) - Get Report shares are down 5.7% to $46.67 in early market trading on Friday following the release of the residential real estate brokerage franchiser' second quarter earnings results before the opening bell today.
The Madison, NJ-based company reported second quarter net income of $97 million, or 66 cents per share, on revenue that increased 9.2% year over year to $1.65 billion.
Analysts on average were expecting the company to report earnings of 76 cents per share on revenue of $1.66 billion.
"Our second quarter results continued the momentum from the first quarter. The fundamentals of the housing market continue to gain strength, and our results reflect these improving conditions along with the impact of our strategic growth initiatives," said CEO Richard Smith.
"Based on our closed and open sales activity in June and July, we expect third quarter homesale transaction sides to be up 5% to 7% year-over-year and average homesale price to increase 2% to 3% for RFG and NRT combined," said Executive Vice President Anthony Hull.
TheStreet Ratings team rates REALOGY HOLDINGS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate REALOGY HOLDINGS CORP (RLGY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."