NASDAQ$NMRK

Newmark Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Newmark reported an increase in revenue and double-digit earnings growth driven by growth across all business lines.

Newmark Group, Inc. reported positive financial results for the second quarter of 2024, with growth in all business lines. The company saw an 8% increase in total revenue and a significant rise in GAAP net income per fully diluted share and Adjusted EPS. The company reiterated its full year 2024 outlook for total revenues, Adjusted EBITDA, Adjusted EPS, and the Adjusted Earnings tax rate.

  • GAAP net income per fully diluted share increased by 100.0% and Adjusted EPS improved by 22.2% due to 8.1% revenue growth.
  • Capital markets revenue grew by 14.5%, outpacing the industry for the fourth consecutive quarter.
  • Ranked as the #1 Office Broker in the U.S. for the first half of 2024 by Real Estate Alert, with over 30% market share.
  • Management services, servicing fees, and other increased by 9.2%, marking the fourth consecutive quarter of year-on-year improvement.

Headline financials

Total Revenue

$633M

Previous: $586M+8.1%
EPS

$0.08

Previous: $0.18-55.6%
Adjusted EBITDA

$86.3M

No prior period
Post-tax Adjusted Earnings

$55.8M

No prior period
Capital Expenditures

-$16.3M

Previous: -$33.6M+51.5%
Free Cash Flow

-$2.03M

Previous: -$27.2M+92.5%
Net Income

$14.3M

Previous: $6.43M+122.1%
Operating Income

$40.7M

Previous: $27.5M+47.8%
Gross Profit

$256M

Previous: $239M+7.1%
Cash & Equivalents

$176M

Previous: $164M+7.3%
Total Assets

$4.76B

Previous: $4.93B-3.5%

Revenue & EPS history

Newmark · Revenue · Quarterly

$633M

Q2 2024+8.1%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Newmark · $241M total across 1 segment · Q2 2023

  • Management Services
    $241M+3.0%

Forward guidance

Newmark reiterated its full year 2024 outlook for total revenues, Adjusted EBITDA, Adjusted EPS, and the Adjusted Earnings tax rate.

Tailwinds

  • Total Revenues: Expecting a year-over-year change of 3% to 7%.
  • Adjusted EBITDA: Expecting a year-over-year change of 5% to 9%.
  • Adjusted Earnings Per Share: Expecting a year-over-year change of 5% to 9%.
  • Adjusted Earnings Tax Rate: Expecting between 15% and 18%.
  • Targeting annual share count growth of 2% or less over time.

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 2024

Historical avgQ2 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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