Q: Please comment on earnings of REAL and more importantly what you may have learned from the conference call . I'm doing some portfolio cleanup and trying to decide whether to hang around or not ...... Thanks for your terrific service Garth ......
5i Research Answer:
EPS of 2c beat estimates of a loss of 2c. Revenue was $11.5M, missing estimates of $14.67M. EBITDA was $700K, vs a loss of $1.29M expected. Revenue rose 12%. US appraisal revenue rose 19%. US Title revenue rose 13%. Volumes improved modestly as 30-year rates decline a bit. The call did not add much colour. REAL discussed its control on costs and its leverage to rates. It gained customer and market share in the quarter. There has been one change in directors. Cash remains high at $45M. EPS has come way down from prior highs, but is expected to show solid growth into 2025. We would consider the quarter OK but do not see the stock as need-to-own at all.