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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.
Newmark
Newmark
Newmark Revenue by Segment
Revenue by Segment
Leasing and Other Commissions Revenue
CapyFin.comCapital Markets Revenue
CapyFin.com 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.
- Expectations are subject to change based on macroeconomic, social, political, and other factors.
- The company does not anticipate providing an outlook for GAAP results.
- Certain GAAP items, which are excluded from Adjusted Earnings and/or Adjusted EBITDA, are difficult to forecast with precision before the end of each period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income