NASDAQ$NMRK

Newmark Group Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Newmark's revenue increased, driven by double-digit gains across all revenue categories and significant market share gains in capital markets and leasing, highlighted by the completion of the Signature portfolio sale.

Newmark reported a strong fourth quarter with a 23.1% increase in total revenues compared to the year-earlier period, driven by double-digit gains in all revenue categories. The company highlighted significant market share gains in leasing and capital markets, including contributions from the Signature transactions. The company anticipates industry volumes accelerating throughout the second half of 2024 and expects significant earnings outperformance towards the end of the year and into 2025.

  • Newmark's revenues increased by over 23% in Q4, with double digit gains in every revenue category.
  • The company completed the more than $50 billion Signature portfolio sale.
  • Newmark grew revenues from Leasing and other commissions by 19.6% year-on-year, exceeding industry declines.
  • Newmark gained significant market share in capital markets and grew revenues from Investment sales and Commercial mortgage origination, net, by 20.7% and 45.9%, respectively.

Headline financials

Total Revenue

$747M

Previous: $607M+23.1%
EPS (adj)

$0.46

Previous: $0.32+43.8%
Capital Expenditures

$11.5M

Previous: $22.2M-48.0%
Net Income

$52.9M

Previous: $6.43M+723.1%
Operating Income

$79.4M

Previous: $25.4M+213.3%
Gross Profit

$747M

Previous: $607M+23.1%

Revenue & EPS history

Newmark · Revenue · Quarterly

$747M

Q4 2023+23.1%vs Q4 2022
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 expects a majority of its year-over-year improvement in earnings to occur in the second and third quarters of 2024. The company expects Fully diluted weighted-average share count for Adjusted Earnings to grow by 2% in 2024 and continues to target average annual net growth 2% or less over time.

Tailwinds

  • Total Revenues (millions): 3% to 7% Expected YoY Change
  • Adjusted EBITDA (millions): 5% to 9% Expected YoY Change
  • Adjusted Earnings Per Share: 5% to 9% Expected YoY Change
  • Adjusted Earnings Tax Rate: 16% to 18%

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 Q4 2023

Historical avgQ4 2023

+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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