Marcus & Millichap's Q4 revenue rises on transaction growth

Overview

• Real estate services firm's preliminary Q4 revenue rose 1.6% yr/yr

• Adjusted EBITDA for Q4 beat estimates, showing significant improvement

• Private Client Market brokerage revenue increased by 10.3% yr/yr

Outlook

• Company anticipates overcoming near-term challenges in commercial real estate transaction market

• Marcus & Millichap sees long-term growth opportunities in fragmented Private Client Market

• Company remains mindful of economic uncertainty and geopolitical factors impacting investor sentiment

Result Drivers

• TRANSACTION GROWTH - Co reported a 9.2% increase in total number of transactions, contributing to revenue growth

• PRIVATE CLIENT MARKET - Revenue in Private Client Market increased by 10.3%, benefiting from higher commission rates

• COST MANAGEMENT - Decrease in operating expenses, particularly in selling, general and administrative expenses, improved profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "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 Marcus & Millichap Inc is $28.00, about 12% above its February 12 closing price of $25.01

Press Release: ID:nBwbWWX6Ya

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