Earnings To Watch: Compass (COMP) Will Announce Q4 Results Tomorrow

Compass Set to Release Earnings Report

Compass (NYSE:COMP), a leader in real estate technology, is scheduled to share its latest earnings results this Thursday after the market closes. Here’s what investors should keep an eye on.

Recent Performance Highlights

In the previous quarter, Compass surpassed Wall Street’s revenue projections by generating $1.85 billion in sales—a 23.6% increase compared to the same period last year. The company delivered a standout performance, not only exceeding EBITDA forecasts but also providing guidance for the next quarter that was above analyst expectations. Transaction volume reached 67,886, marking a 21.5% year-over-year rise.

Investment Outlook

Is Compass a stock to buy or sell ahead of its earnings announcement?

Expectations for This Quarter

For the upcoming quarter, analysts anticipate Compass’s revenue will grow by 21% year over year. This represents a slowdown from the 25.9% growth rate posted in the same quarter last year.

Analyst Sentiment and Track Record

Over the past month, most analysts have maintained their forecasts for Compass, indicating confidence in the company’s direction as it approaches earnings. However, Compass has failed to meet Wall Street’s revenue targets several times in the last two years.

Industry Peers: Recent Results

Several competitors in the consumer discretionary real estate services sector have already reported their fourth-quarter results, offering some context for Compass’s performance. Howard Hughes Holdings saw its revenue drop by 36.5% year over year but still exceeded analyst estimates by 5.5%. Marcus & Millichap reported a 1.6% revenue increase, beating expectations by 6.3%. Following these announcements, Howard Hughes Holdings’ stock declined by 8.3%, while Marcus & Millichap’s shares rose 3.4%.

Market Trends and Compass’s Position

Concerns over potential tariffs and changes to corporate taxes have contributed to market volatility in 2025. While some real estate services stocks have managed to perform well despite these challenges, the sector as a whole has lagged, with average share prices falling 2.3% in the past month. Compass’s stock has dropped 30.9% during the same period and currently trades at $9.39, compared to an average analyst price target of $14.45.

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