What Happened:

Shares of real estate franchise company RE/MAX (NYSE:RMAX) jumped 15.1% in the morning session after the company reported first-quarter results that topped analysts' revenue expectations. Its EPS also narrowly outperformed Wall Street's estimates. That the company reaffirmed full year revenue and adjusted EBITDA guidance means the company is on track. 

On the other hand, its operating margin missed, and its number of agents fell short of Wall Street's estimates. Overall, this was a decent quarter for RE/MAX.

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What is the market telling us:

RE/MAX's shares are somewhat volatile and over the last year have had 34 moves greater than 5%. But moves this big are very rare even for RE/MAX and that is indicating to us that this news had a significant impact on the market's perception of the business. 

RE/MAX is down 38% since the beginning of the year, and at $7.89 per share it is trading 61.5% below its 52-week high of $20.47 from July 2023. Investors who bought $1,000 worth of RE/MAX's shares 5 years ago would now be looking at an investment worth $195.95.

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