Marcus & Millichap (NYSE:MMI) Posts Earnings Results, Beats Estimates By $0.07 EPS

Marcus & Millichap (NYSE:MMI) posted its quarterly earnings results on Thursday. The real estate investment trust reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.07, Zacks reports. The company had revenue of $202.91 million during the quarter, compared to the consensus estimate of $194.30 million. Marcus & Millichap had a return on equity of 2.97% and a net margin of 1.77%.

Here are the key takeaways from Marcus & Millichap’s conference call:

• Second-quarter revenue rose 18% year over year to $203 million, with growth across brokerage and financing. Net income improved to $4 million, or $0.10 per share, from an $11 million loss, while adjusted EBITDA increased to $12 million from $1.5 million.
• Activity broadened across the platform: private-client brokerage revenue increased 14%, middle-market revenue rose 13%, and larger transactions jumped 43%. Financing revenue grew 15%, with refinancings representing 47% of financing revenue versus 39% a year earlier.
• Management expects additional operating leverage as revenue recovers, citing disciplined costs, technology investments, and revenue above the approximately $755 million annual level that previously produced break-even results. SG&A declined as a percentage of revenue to 35% from 42% a year earlier.
• The commercial real estate recovery remains uneven: higher and volatile interest rates are extending transaction timelines, and third-quarter pipeline growth is expected to be modest. Management remains encouraged by narrowing bid-ask spreads, improved lender liquidity, and greater seller motivation.
• Marcus & Millichap returned capital through $24 million of share repurchases during the quarter and declared a $0.25 semiannual dividend, while retaining $345 million in cash and marketable securities. The company also highlighted potential expansion in leasing, appraisal, investment management, and financing, including possible acquisitions.

Marcus & Millichap Price Performance

Shares of NYSE:MMI traded down $0.20 during trading on Friday, hitting $31.50. 118,020 shares of the company were exchanged, compared to its average volume of 126,666. The company has a market cap of $1.19 billion, a PE ratio of 85.12 and a beta of 1.23. The stock has a 50 day moving average of $30.59 and a 200 day moving average of $28.26. Marcus & Millichap has a 52-week low of $24.43 and a 52-week high of $33.62.

Marcus & Millichap Announces Dividend

The firm also recently announced a dividend, which will be paid on Tuesday, October 6th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a yield of 163.0%. Marcus & Millichap’s payout ratio is presently -5,000.00%.

Wall Street Analysts Forecast Growth

MMI has been the topic of a number of research reports. Wall Street Zen upgraded Marcus & Millichap from a “hold” rating to a “strong-buy” rating in a research note on Saturday. Weiss Ratings downgraded shares of Marcus & Millichap from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Two investment analysts have rated the stock with a Sell rating, According to MarketBeat, the company has an average rating of “Sell” and an average target price of $28.00.

Hedge Funds Weigh In On Marcus & Millichap

Several hedge funds have recently made changes to their positions in MMI. Kestra Advisory Services LLC bought a new stake in shares of Marcus & Millichap during the 4th quarter valued at $30,000. Quantbot Technologies LP purchased a new stake in Marcus & Millichap during the 2nd quarter worth about $137,000. Strs Ohio bought a new position in Marcus & Millichap in the 1st quarter worth about $145,000. Tower Research Capital LLC TRC boosted its stake in Marcus & Millichap by 769.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,286 shares of the real estate investment trust’s stock worth $162,000 after purchasing an additional 4,678 shares during the period. Finally, Campbell & CO Investment Adviser LLC purchased a new position in Marcus & Millichap during the 4th quarter valued at about $200,000. 62.78% of the stock is currently owned by hedge funds and other institutional investors.

About Marcus & Millichap

Marcus & Millichap (NYSE: MMI) is a leading commercial real estate brokerage firm focused on investment sales, financing, research and advisory services. Founded in 1971 by George M. Marcus and William A. Millichap, the company has grown to specialize in the marketing of multifamily, retail, office, industrial, hospitality and other commercial property types. Through an extensive network of investment specialists, Marcus & Millichap connects property owners and investors with tailored transactions across a range of asset classes.

The firm offers comprehensive capital markets solutions, including debt and equity placement, structured finance, and customized financing programs.