The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how real estate services stocks fared in Q4, starting with Offerpad (NYSE:OPAD).

Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.

The 14 real estate services stocks we track reported a weaker Q4; on average, revenues beat analyst consensus estimates by 1.7%, while next quarter's revenue guidance was 21.1% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and real estate services stocks have had a rough stretch, with share prices down 12.7% on average since the previous earnings results.

Weakest Q4: Offerpad (NYSE:OPAD)

Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.

Offerpad reported revenues of $240.5 million, down 64.5% year on year, falling short of analyst expectations by 4.7%. It was a weak quarter for the company, with a miss of analysts' homes sold estimates and revenue guidance for next quarter falling below analysts' expectations.

“We successfully navigated 2023 from a position of operational excellence,” said Brian Bair, chairman and CEO.

Offerpad delivered the weakest performance against analyst estimates of the whole group. The stock is down 20.5% since the results and currently trades at $7.31.

Read our full report on Offerpad here, it's free.

Best Q4: CBRE (NYSE:CBRE)

Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.

CBRE reported revenues of $8.95 billion, up 9.2% year on year, outperforming analyst expectations by 6%. It was an impressive quarter for the company, with a solid beat of analysts' revenue estimates.

The stock is up 2.8% since the results and currently trades at $89.39.

Is now the time to buy CBRE? Access our full analysis of the earnings results here, it's free.

Anywhere Real Estate (NYSE:HOUS)

Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.

Anywhere Real Estate reported revenues of $1.25 billion, down 5.5% year on year, falling short of analyst expectations by 2.1%. It was a weak quarter for the company: Anywhere Real Estate missed analysts' estimates on all major operating metrics (revenue, EBITDA, EPS, free cash flow). Furthermore, it noted that Q1 2024 is seeing historically low unit volume and, as a result, expects to produce negative EBITDA.

The stock is down 30.4% since the results and currently trades at $5.33.

Read our full analysis of Anywhere Real Estate's results here.

Compass (NYSE:COMP)

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Compass reported revenues of $1.10 billion, down 1% year on year, falling short of analyst expectations by 3%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates. On the other hand, next quarter's revenue guidance came in higher than Wall Street's estimates.

The stock is down 1.8% since the results and currently trades at $3.37.

Read our full, actionable report on Compass here, it's free.

Newmark (NASDAQ:NMRK)

Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.

Newmark reported revenues of $747.4 million, up 23.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. Newmark's 2024 guidance, however, was quite bullish as it expects industry volumes to accelerate in the second half of the year, leading to anticipated earnings outperformance.

The stock is down 7.8% since the results and currently trades at $9.59.

Read our full, actionable report on Newmark here, it's free.

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