Marcus & Millichap (MMI) reports Q3: everything you need to know ahead of earnings

What happened

Marcus & Millichap, a real estate brokerage and services firm, is scheduled to announce earnings this Friday morning. Last quarter it reported revenue of $202.9 million, up 17.8% from a year earlier, and exceeded analyst expectations for revenue, earnings per share, and EBITDA.

Confirmed

Global impact / market context

The upcoming report will show whether revenue growth is holding up: analysts expect a 5.8% year-on-year increase, slower than the 15.1% growth in the same quarter last year. Revenue trends can indicate how much business the firm is winning and influence expectations for its earnings.

Analyst inference

Analysts have generally reaffirmed their estimates over the past 30 days, while the company has a history of beating expectations. Two peers reported revenue growth: JLL rose 11.8%, and Cushman & Wakefield rose 7.7%, offering comparison points rather than a forecast for Marcus & Millichap.

Confirmed

What to watch

1. Compare reported revenue growth with the expected 5.8% year-on-year increase; a shortfall could challenge expectations for the firm’s ability to maintain its recent business momentum. Analyst inference
2. Check whether earnings per share and EBITDA, a measure of operating performance before certain costs, beat analyst estimates again, as they did last quarter. Analyst inference
3. Look for management’s comments on demand and business activity, which may help explain whether slower expected revenue growth reflects a temporary pause or a continuing trend. Analyst inference

Evidence

• stockstory.org