Canada's Real Matters Q1 revenue up 14%, beats estimates

Overview

• Canada's Real Matters fiscal Q1 revenue rose 14% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 missed analyst expectations

• Company launched eight new clients, including two top-100 lenders

Outlook

• Company sees substantial opportunity in U.S. mortgage refinance market due to high interest rates

• Real Matters remains cautiously optimistic about improving U.S. mortgage market fundamentals

• Company aims to grow market share through client additions and performance improvements

Result Drivers

• NEW CLIENTS - Launched eight new clients, including two top-100 lenders, contributing to revenue growth

• REFINANCE VOLUMES - U.S. Title refinance origination revenues up 135% year-over-year due to new client volumes and market share gains

• MARKET OPPORTUNITY - Large pool of refinance candidates in U.S. mortgage market presents growth opportunity

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate services peer group is "buy"

• Wall Street's median 12-month price target for Real Matters Inc is C$8.00, about 24.8% above its January 28 closing price of C$6.41

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 67 three months ago

Press Release: ID:nGNX52QnLq

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