RE/MAX Stock Plummets Amid Disappointing Earnings Report
RE/MAX (NYSE: RMAX) shares plunged 11.9% during pre-market trading today after the company reported a lackluster fourth-quarter 2024 performance. The real estate franchise company missed Wall Street's full-year revenue and next-quarter EBITDA estimates.
Financial Performance
RE/MAX's revenue declined 5.4% year-over-year, primarily due to a 4.8% drop in its agent count in the US and Canada. Despite the revenue decline, the company surpassed analysts' EPS expectations and outperformed EBITDA estimates. However, the overall performance was below market expectations.
Market Reaction
RE/MAX stock has historically exhibited significant volatility, with 33 price swings of over 5% in the past year. The current plunge marks a substantial drop, indicating a significant impact on market sentiment. The last major stock movement, a 15.5% decline, occurred four months ago following weaker-than-expected third-quarter earnings.
Long-Term Performance
Since the start of 2024, RE/MAX has lost 12.6% of its value and is currently trading 35.5% below its 52-week high of $14.04. Investors who purchased $1,000 worth of RE/MAX stock five years ago would now hold an investment valued at $267.43.