NYSE$MMI

Marcus & Millichap · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Marcus & Millichap's Q4 2020 results were reported, showing revenue growth and increased net income compared to the previous year.

Marcus & Millichap reported a record fourth quarter with a 5.2% increase in total revenues, reaching $250.2 million. Net income increased to $23.6 million, or $0.59 per diluted share, and revenue from financing fees rose by 42.8%.

  • Total revenues increased by 5.2% year-over-year to $250.2 million.
  • Net income was $23.6 million, or $0.59 per diluted share.
  • Revenue from financing fees increased by 42.8% year-over-year to $26.9 million.
  • Completed two business acquisitions.

Headline financials

Total Revenue

$250M

Previous: $238M+5.2%
EPS (adj)

$0.59

Previous: $0.52+13.5%
Investment Sales Professionals

2.0K

Previous: 2.0K-0.7%
Capital Expenditures

$1.53M

Previous: $2.17M-29.3%
Free Cash Flow

$64.8M

Previous: $29.2M+122.2%
Net Income

$23.6M

Previous: $20.7M+13.9%
Operating Income

$30.1M

Previous: $27.1M+10.9%
Gross Profit

$89.5M

Previous: $82.7M+8.3%
Cash & Equivalents

$243M

Previous: $233M+4.5%
Total Assets

$779M

Previous: $709M+9.9%
Stock-Based Comp

$2.35M

Previous: $2.24M+5.2%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$250M

Q4 2020+5.2%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Marcus & Millichap · $217M total across 4 segments · Q4 2020

  • Private Client Market
    $139M-2.0%
  • Larger Transaction Market
    $40.7M+15.8%
  • Middle Market
    $29.7M-5.0%
  • Less than $1 million
    $7.91M

Forward guidance

The company anticipates slower transaction market improvement in Q1 but expects positive factors like widespread vaccinations, job growth, and stimulus to increase transaction volumes in the second half of the year. Strategic investments and technology enhancements are expected to drive long-term shareholder value.

Tailwinds

  • Expectation of widespread vaccinations
  • More robust job numbers
  • Additional stimulus should lead to the release of pent-up demand in the second half of the year
  • Continue to strengthen tools and technology
  • Make strategic investments, positioning us to create long-term shareholder value

Headwinds

  • Hampered transaction velocity as a result of the impact of COVID-19 on the market
  • Volatility in market sales and investor sentiment driven by slowdown in market sales in the short- to mid-term due to local and regional surges of COVID-19 cases
  • Interest rate fluctuations
  • Increasing bid-ask spread between buyers and sellers and economic trends
  • Possible impediment of investor sentiment related to regulatory changes at the local, state and national level

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 2020

Historical avgQ4 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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