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Sep 30, 2024
Newmark Q3 2024 Earnings Report
Newmark's financial performance improved, highlighted by revenue growth and increased earnings per share.
Key Takeaways
Newmark Group, Inc. reported an 11.3% increase in revenue to $686 million for Q3 2024, driving a 22% increase in earnings per share. The company experienced growth across all major business lines, including a 45% increase in origination fees within Capital Markets and double-digit increases in Management and Servicing businesses. Leasing results improved due to growth in retail and industrial volumes.
Newmark's revenue grew by 11.3%, leading to a 22.2% increase in Adjusted EPS.
Capital Markets revenues increased by 18.5%, marking the fourth consecutive quarter of double-digit growth.
Management Services, Servicing Fees, and Other revenues rose by 11.4%, demonstrating the fifth consecutive quarter of strong year-on-year growth.
The company advised on significant data center transactions, including a $3.4 billion joint venture in Texas and another JV worth up to $5 billion for AI data centers.
Revenue by Segment
Forward Guidance
Newmark updated its full year 2024 outlook, anticipating total revenues between $2.62 billion and $2.68 billion, Adjusted Earnings Per Share between $1.11 and $1.17, and Adjusted EBITDA between $410 million and $430 million.
Positive Outlook
- Total Revenues are expected to be between $2,620 million and $2,680 million, representing a 6% - 9% year-over-year change.
- Adjusted Earnings Per Share are projected to be in the range of $1.11 to $1.17, a 6% - 11% increase year-over-year.
- The Adjusted Earnings Tax Rate is estimated to be between 13% and 15%.
- Adjusted EBITDA is forecasted to be between $410 million and $430 million, indicating a 3% - 8% year-over-year change.
- The outlook excludes the potential impact of future acquisitions and assumes no significant changes in Newmark's stock price.
Challenges Ahead
- The fourth quarter of 2023 included revenues from Newmark's advisory role for the FDIC in its sale of the $39.5 billion Signature Bridge Bank loan portfolio.
- Fourth quarter 2023 Adjusted EBITDA included a favorable $12.8 million legal settlement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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