Realogy Holdings Corp (RLGY) Jumps on Earnings Beat

Jacob Harper |

Madison, NJ-based real estate broker and relocation service provider Realogy Holdings Corp (RLGY) saw shares way up in early trading after the company reported earnings for the third quarter that exceeded expectations by a wide margin.



The bounce experienced by Realogy is concomitant with a slow but steady recovery of the American housing market after the bubble popped in 2007. Realogy’s uptick, though, was even more pronounced than that experienced by homesales in general. In the earnings report, Realogy's chairman, CEO and president Richard A. Smith was quoted as saying "Our 29% increase in year-over-year homesale transaction volume exceeded the 26% sales volume increase reported by the National Association of Realtors (for the quarter).”

The company likewise maintained an optimistic view of the rest of the year. While the company does not expect to repeat their robust fourth quarter of 2012, which was inflated by the “then impending change in capital gains tax,” Realogy still looks to post solid numbers as the year closes out.

The last analyst to weigh in on Realogy, Stern Agee, had been slightly bearish, initiating coverage on Oct. 30 at neutral.

For their third quarter 2013 earnings report, Realogy reported a net gain of $150 million, or $1.03 per share, versus the net loss of $34 million, or $4.24 per share, from the same period a year ago. Revenue for the quarter was $1.55 billion, as compared to $1.21 billion from the previous year. Analysts were expecting a net gain of $0.87 per share on revenues of $1.48 billion.

Realogy shot up on the revenue beat and return to profitability, shooting up 7.62 percen tin midday trading to hit $43.77 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
RLGY Realogy Holdings Corp. 33.94 0.38 1.13 1,234,707 Trade
OJIPY Oji Holdings Corp ADR 51.07 0.00 0.00 0

Comments

Emerging Growth

Inception Mining Inc

Inception Mining Inc a mining exploration stage company engaged in the acquisition, exploration, and development of mineral properties, for gold from owned mining properties.

Private Markets

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…