NASDAQ$NMRK

Newmark Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Newmark's financial performance improved, highlighted by revenue growth and increased earnings per share.

Newmark Group, Inc. reported an 11.3% increase in revenue to $686 million for Q3 2024, driving a 22% increase in earnings per share. The company experienced growth across all major business lines, including a 45% increase in origination fees within Capital Markets and double-digit increases in Management and Servicing businesses. Leasing results improved due to growth in retail and industrial volumes.

  • Newmark's revenue grew by 11.3%, leading to a 22.2% increase in Adjusted EPS.
  • Capital Markets revenues increased by 18.5%, marking the fourth consecutive quarter of double-digit growth.
  • Management Services, Servicing Fees, and Other revenues rose by 11.4%, demonstrating the fifth consecutive quarter of strong year-on-year growth.
  • The company advised on significant data center transactions, including a $3.4 billion joint venture in Texas and another JV worth up to $5 billion for AI data centers.

Headline financials

Total Revenue

$686M

Previous: $616M+11.3%
EPS

$0.10

Previous: $0.27-63.0%
Adjusted EBITDA

$118M

No prior period
Post-tax Adjusted Earnings

$78M

No prior period
Capital Expenditures

-$25.5M

Previous: -$43.8M+41.8%
Free Cash Flow

-$7.7M

Previous: -$33.9M+77.3%
Net Income

$17.8M

Previous: $9.95M+78.9%
Operating Income

$41.1M

Previous: $30.1M+36.6%
Gross Profit

$294M

Previous: $245M+19.8%
Cash & Equivalents

$179M

Previous: $143M+24.6%
Total Assets

$5B

Previous: $4.43B+12.8%

Revenue & EPS history

Newmark · Revenue · Quarterly

$686M

Q3 2024+11.3%vs Q3 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

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

  • Management Services
    $241M+3.0%

Forward guidance

Newmark updated its full year 2024 outlook, anticipating total revenues between $2.62 billion and $2.68 billion, Adjusted Earnings Per Share between $1.11 and $1.17, and Adjusted EBITDA between $410 million and $430 million.

Tailwinds

  • Total Revenues are expected to be between $2,620 million and $2,680 million, representing a 6% - 9% year-over-year change.
  • Adjusted Earnings Per Share are projected to be in the range of $1.11 to $1.17, a 6% - 11% increase year-over-year.
  • The Adjusted Earnings Tax Rate is estimated to be between 13% and 15%.
  • Adjusted EBITDA is forecasted to be between $410 million and $430 million, indicating a 3% - 8% year-over-year change.
  • The outlook excludes the potential impact of future acquisitions and assumes no significant changes in Newmark's stock price.

Headwinds

  • The fourth quarter of 2023 included revenues from Newmark's advisory role for the FDIC in its sale of the $39.5 billion Signature Bridge Bank loan portfolio.
  • Fourth quarter 2023 Adjusted EBITDA included a favorable $12.8 million legal settlement.
  • Expectations are subject to change based on macroeconomic, social, political, and other factors.
  • The company does not anticipate providing an outlook for GAAP results.
  • Certain GAAP items, which are excluded from Adjusted Earnings and/or Adjusted EBITDA, are difficult to forecast with precision before the end of each period.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.3%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.9%

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 2026-0.8%-6.1%
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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