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Sep 30, 2023
Newmark Q3 2023 Earnings Report
Newmark's financial performance was reported for Q3 2023, showing a mix of challenges and strategic gains.
Key Takeaways
Newmark reported a decrease in total revenues by 7.3% compared to the year-earlier period, but highlighted significant market share gains in leasing and capital markets. The company saw double-digit growth in recurring businesses and expects to outperform peers in the challenging market of 2023. Newmark is focusing on attracting talent and expanding its global footprint to navigate shifting market dynamics.
Newmark gained market share in leasing and capital markets.
Recurring revenues grew by 14.1% year-on-year, driven by management services and servicing fees.
The company expects to outperform peers in Q4 2023 with double-digit growth in revenues, Adjusted EPS, and Adjusted EBITDA.
Newmark served as advisor to the FDIC on the sale of Signature Bridge Bank loans.
Newmark
Newmark
Forward Guidance
Newmark provided guidance for Q4 2023 and full year 2023 total revenues, Adjusted EBITDA and Adjusted EPS, reflecting the impact of the current interest rate environment.
Positive Outlook
- Expects double-digit growth in revenues, Adjusted EPS, and Adjusted EBITDA in Q4 2023.
- Forecasts Q4 2023 total revenues between $692 million and $742 million.
- Anticipates Q4 2023 Adjusted EBITDA between $143 million and $167 million.
- Projects Q4 2023 Adjusted Earnings Per Share between $0.42 and $0.49.
- Expects full year 2023 total revenues between $2.415 billion and $2.465 billion.
Challenges Ahead
- Full year 2023 total revenues are expected to be down 11% - 9% compared to 2022.
- Full year 2023 Adjusted EBITDA is expected to be down 27% - 22% compared to 2022.
- Full year 2023 Adjusted Earnings Per Share is expected to be down 32% - 27% compared to 2022.
- Guidance excludes the potential impact of additional share repurchases or any material future acquisitions.
- The current interest rate environment continues to impact revenues and Adjusted EBITDA.