NASDAQ$NMRK
Newmark Group Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Newmark's financial performance declined due to industry-wide headwinds, but management services and leasing showed resilience.
Newmark reported a decrease in total revenues and earnings for the second quarter of 2023 compared to the record revenues of the prior year. Fees from management services increased, and leasing revenues outperformed the industry. The company is focused on cost reductions and expects capital markets to drive future growth as interest rates stabilize.
- Total revenues decreased by 22.4% year-over-year to $585.8 million.
- GAAP net income per fully diluted share decreased by 84.6% to $0.04.
- Adjusted EBITDA decreased by 54.3% year-over-year to $72.9 million.
- Fees from management services, servicing, and other grew by 7.4% year-on-year.
Headline financials
Revenue & EPS history
Newmark · Revenue · Quarterly
$586M
Revenue by segment
Newmark · $241M total across 1 segment · Q2 2023
- Management Services$241M+3.0%100.0%
Forward guidance
Newmark anticipates generating approximately $2.5 billion in total revenues and $425 million of Adjusted EBITDA in 2023. The company expects a tax rate of 14% and 17% for Adjusted Earnings and anticipates full year 2023 fully diluted weighted average share count being approximately flat compared with 2022.
Tailwinds
- Anticipates generating approximately $2.5 billion in total revenues in 2023.
- Expects to produce $425 million of Adjusted EBITDA in 2023.
- Expects to realize at least $35 million during 2023 from cost reduction target.
- Anticipates full year 2023 fully diluted weighted average share count being approximately flat compared with 2022.
- Assumes that the decline in industry-wide transactions will begin to rebound near the end of 2023.
Headwinds
- Guidance assumes that the decline in industry-wide transactions will begin to rebound near the end of 2023.
- Outlook excludes the potential impact of additional share repurchases.
- Outlook excludes any material future acquisitions.
- Results for its higher margin investment sales and mortgage brokerage business continue to be impacted by the rapid rise in interest rates.
- Newmark generated record second quarter 2022 revenues, which makes year-over-year comparisons more challenging.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
+0.3%
Avg return
Earnings day
+1.5%
Avg return
5 days after
+2.4%
Avg return
30 days after
39%
13 / 33 earnings
Positive
+20.1%
Q3 2023
Best reaction
-12.3%
Q3 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.7% | -6.0% | -13.3% | |
| Q4 2025 | -0.5% | -3.7% | -2.9% | |
| Q3 2025 | -3.1% | -8.7% | -9.4% | |
| Q1 2025 | -0.6% | +0.5% | -0.5% | |
| Q4 2024 | +6.3% | +5.1% | -10.3% | |
| Q3 2024 | +0.7% | +6.2% | +5.3% | |
| Q2 2024 | -9.5% | -7.4% | +8.6% | |
| Q1 2024 | +1.2% | +0.7% | +4.3% | |
| Q4 2023 | -1.0% | +3.7% | +5.1% | |
| Q3 2023 | +20.1% | +26.3% | +48.3% | |
| Q2 2023 | +1.5% | +10.3% | -3.4% | |
| Q1 2023 | -8.8% | -11.5% | +2.0% | |
| Q4 2022 | -4.8% | -10.0% | -25.1% | |
| Q3 2022 | -12.3% | -17.7% | -9.5% | |
| Q2 2022 | -7.4% | -10.8% | -11.3% | |
| Q1 2022 | -10.4% | -5.1% | -15.8% | |
| Q4 2021 | -3.7% | +7.4% | -6.0% | |
| Q3 2021 | +3.4% | +3.1% | +3.8% | |
| Q2 2021 | -2.4% | +2.2% | +0.0% | |
| Q1 2021 | +18.2% | +19.2% | +19.0% | |
| Q4 2020 | +14.7% | +17.3% | +24.2% | |
| Q3 2020 | +13.3% | +34.5% | +56.9% | |
| Q2 2020 | +5.2% | +12.9% | +2.4% | |
| Q1 2020 | +19.1% | +3.4% | +82.1% | |
| Q4 2019 | -5.0% | -6.1% | -45.5% | |
| Q3 2019 | +6.9% | +18.1% | +31.4% | |
| Q2 2019 | -4.5% | -10.9% | -12.0% | |
| Q1 2019 | -5.0% | -2.1% | +1.8% | |
| Q4 2018 | -3.9% | -3.9% | -16.7% | |
| Q3 2018 | +1.1% | -4.1% | -5.8% | |
| Q2 2018 | -4.7% | -1.2% | -7.1% | |
| Q1 2018 | -5.6% | -4.8% | -11.6% | |
| Q4 2017 | -7.8% | -6.4% | -8.6% | |
| Q2 2017 | — | — | — |
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