eXp World (EXPI) Q4 Earnings Report Preview: What To Look For

Real estate technology company eXp World (NASDAQ:EXPI) will be reporting results this Tuesday after market close. Here’s what to look for.

eXp World beat analysts’ revenue expectations last quarter, reporting revenues of $1.32 billion, up 6.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

This quarter, the market is expecting eXp World’s revenue to grow 5.8% year on year, slowing from the 11.9% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. eXp World has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at eXp World’s peers in the consumer discretionary - real estate services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Howard Hughes Holdings’s revenues decreased 36.5% year on year, beating analysts’ expectations by 5.5%, and Marcus & Millichap reported revenues up 1.6%, topping estimates by 6.3%. Howard Hughes Holdings traded down 8.1% following the results while Marcus & Millichap was up 3.4%.

Investors in the consumer discretionary - real estate services segment have had steady hands going into earnings, with share prices flat over the last month. eXp World is down 15.4% during the same time and is heading into earnings with an average analyst price target of $11.50 (compared to the current share price of $7.60).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares.