Bridgemarq Real Estate Services' Q2 revenue falls to C$108 mln, reports net loss

Overview

• Bridgemarq Q2 revenue declines to C$108 mln from C$110.5 mln last year

• Company reports net loss of C$5.4 mln due to Exchangeable Units valuation

• Adjusted net earnings dip to C$2.2 mln amid higher operating costs

Outlook

• Company cites economic uncertainty impacting real estate market activity

• Bridgemarq highlights strength in Quebec's residential market

• Company sees improved consumer sentiment boosting market activity

• Bridgemarq focuses on AI tools to enhance realtor productivity

Result Drivers

• FRANCHISE FEES - Increase in franchise fees due to fee hikes and more REALTORS, per company

• EXCHANGEABLE UNITS - Net loss driven by fair valuation loss on Exchangeable Units, contrasting with last year's gain

• OPERATING COSTS - Higher operating costs led to decreased adjusted net earnings, partially offset by lower interest and depreciation

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for Bridgemarq Real Estate Services Inc is C$18.00, about 15.8% above its August 13 closing price of C$15.15

• The stock recently traded at 60 times the next 12-month earnings vs. a P/E of 57 three months ago

Press Release: ID:nCNWb6Zmla