NYSE$MMI

Marcus & Millichap · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Marcus & Millichap's financial results for Q3 2020 were reported, showing a recovery in transaction activity and availability of capital after the initial shock of COVID-19.

Marcus & Millichap reported total revenues of $158.6 million and a net income of $6.0 million for the third quarter of 2020. The company saw a sequential increase in brokerage transactions and outperformed the market despite the ongoing impact of the COVID-19 pandemic.

  • Total revenues reached $158.6 million.
  • Net income was reported at $6.0 million, or $0.15 per common share, diluted.
  • Revenue from financing fees totaled $15.6 million.
  • Brokerage transactions increased by 42% sequentially quarter-over-quarter.

Headline financials

Total Revenue

$159M

Previous: $198M-20.0%
EPS (adj)

$0.15

Previous: $0.49-69.4%
Investment Sales Professionals

1.9K

No prior period
Capital Expenditures

-$5.41M

Previous: -$6.64M+18.5%
Free Cash Flow

$628K

Previous: $12.6M-95.0%
Net Income

$6.04M

Previous: $19.3M-68.7%
Operating Income

$6.54M

Previous: $24.1M-72.8%
Gross Profit

$50K

Previous: $68K-26.5%
Cash & Equivalents

$173M

Previous: $226M-23.4%
Total Assets

$696M

Previous: $665M+4.7%
Stock-Based Comp

$2.38M

Previous: $2.11M+12.7%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$159M

Q3 2020-20%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Marcus & Millichap · $135M total across 3 segments · Q3 2020

  • Private Client Market
    $97.9M
  • Larger Transaction Market
    $19.1M
  • Middle Market
    $17.6M

Forward guidance

Marcus & Millichap believes it is positioned to achieve long-term growth by leveraging its national brand, growth opportunities in the Middle Market and Larger Transaction Market segments, significant growth potential in its financing division, and strategic acquisitions.

Tailwinds

  • Leading national brand and market position within the Private Client Market segment
  • Growth opportunities in the Middle Market and Larger Transaction Market segments
  • Significant growth potential in financing division
  • Supplementing organic growth through incremental strategic acquisitions
  • Further expansion of investment brokerage services in various specialty property types

Headwinds

  • Slower transaction velocity due to the impact of COVID-19
  • Volatility in market sales and investor sentiment driven by regional surges of COVID-19 cases
  • Interest rate fluctuations
  • Increasing bid-ask spread gap between buyers and sellers
  • Economic trends

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 Q3 2020

Historical avgQ3 2020

+1.5%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

66%

33 / 50 earnings

Positive

+16.9%

Q1 2015

Best reaction

-29.3%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+3.6%+3.7%
Q4 2025+3.4%+2.9%+1.6%
Q3 2025-0.5%+2.8%-1.9%
Q1 2025+2.6%+4.2%+1.1%
Q4 2024+5.4%+3.6%-7.2%
Q3 2024+4.3%+2.5%+2.4%
Q2 2024-0.5%-5.6%-1.9%
Q1 2024+2.0%+1.0%-8.3%
Q4 2023-3.4%-7.5%-17.4%
Q3 2023+8.7%+3.9%+17.9%
Q2 2023+0.5%-2.8%-9.8%
Q1 2023-4.9%-8.7%-0.0%
Q4 2022-2.2%-1.8%-12.8%
Q3 2022+2.3%-1.9%+7.9%
Q2 2022+0.1%-2.3%-9.4%
Q1 2022-5.2%-9.4%-8.4%
Q4 2021+5.4%+0.4%+3.3%
Q3 2021+6.5%+1.9%-2.4%
Q2 2021-1.1%-1.2%+0.1%
Q1 2021+3.0%-0.1%+6.3%
Q4 2020+4.2%+4.0%-10.4%
Q3 2020+2.1%+10.7%+17.1%
Q2 2020-0.1%+3.0%+8.2%
Q1 2020+9.5%-5.4%+21.2%
Q4 2019+1.0%-9.5%-34.9%
Q3 2019-7.3%-4.1%+1.9%
Q2 2019+10.0%+12.5%+15.7%
Q1 2019-15.1%-18.0%-28.7%
Q4 2018+1.0%-2.3%-4.2%
Q3 2018+5.1%+5.4%-0.8%
Q2 2018-3.0%-3.8%-10.2%
Q1 2018+6.6%+6.0%+9.9%
Q4 2017+9.3%+10.1%+5.9%
Q3 2017+5.5%+3.7%+7.8%
Q2 2017+5.4%-0.6%+0.5%
Q1 2017-3.7%-6.4%-0.7%
Q4 2016-1.0%-2.4%-8.7%
Q3 2016+2.0%+4.4%+18.0%
Q2 2016+5.2%+4.9%-1.7%
Q1 2016+10.5%
Q4 2015+2.9%
Q3 2015-29.3%
Q2 2015-4.3%
Q1 2015+16.9%
Q4 2014-6.1%
Q3 2014+2.1%
Q2 2014+8.2%
Q1 2014+11.0%
Q4 2013-3.0%
Q3 2013+1.6%
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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