NYSE$MMI

Marcus & Millichap · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported a revenue increase driven by real estate brokerage commissions, financing fees, and other revenues.

Marcus & Millichap reported a 3.3% increase in revenue for Q4 2019, reaching $237.9 million. Net income was $20.7 million, or $0.52 per diluted share. The growth was attributed to expanded marketing efforts and increased client outreach, despite a challenging prior-year comparison.

  • Total revenues increased 3.3% to $237.9 million.
  • Net income was $20.7 million, or $0.52 per common share, diluted.
  • Revenue from financing fees increased 13.4% to $18.8 million.
  • Private Client brokerage revenue increased 5.8%.

Headline financials

Total Revenue

$238M

Previous: $230M+3.3%
EPS (adj)

$0.52

Previous: $0.66-21.2%
Investment Sales Professionals

2.0K

No prior period
Capital Expenditures

$2.17M

Previous: $3.5M-38.0%
Free Cash Flow

$29.2M

Previous: $58.8M-50.4%
Net Income

$20.7M

Previous: $26.2M-21.0%
Operating Income

$27.1M

Previous: $32.5M-16.6%
Gross Profit

$82.7M

Previous: $81.8M+1.1%
Cash & Equivalents

$233M

Previous: $215M+8.4%
Total Assets

$709M

Previous: $566M+25.2%
Stock-Based Comp

$2.24M

Previous: $3.06M-27.0%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$238M

Q4 2019+3.3%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Marcus & Millichap · $208M total across 3 segments · Q4 2019

  • Private Client Market
    $142M+5.8%
  • Larger Transaction Market
    $35.1M-6.5%
  • Middle Market
    $31.3M+1.4%

Forward guidance

The Company believes that it is positioned to achieve long-term growth by leveraging its brand, market position, and growth opportunities in various market segments and financing division.

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, Marcus & Millichap Capital Corporation
  • Supplementing organic growth through incremental strategic acquisitions
  • Further expansion of investment brokerage services in various specialty property types

Headwinds

  • Volatility in market sales and investor sentiment
  • Slowdown in market sales in the short- to mid-term due to a maturing cycle, anticipation of election results, interest rate fluctuations
  • Increasing bid-ask spread gap between buyers and sellers and economic trends
  • Possible impediment of investor sentiment related to regulatory changes
  • Global geopolitical uncertainty which may cause investors to refrain from transacting

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 Q4 2019

Historical avgQ4 2019

+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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro