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.
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