Last week, you might have seen that Anywhere Real Estate Inc. (NYSE:HOUS) released its quarterly result to the market. The early response was not positive, with shares down 5.3% to US$5.18 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at US$1.1b, statutory losses exploded to US$0.91 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Anywhere Real Estate's three analysts is for revenues of US$5.82b in 2024. This reflects a credible 3.4% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 38% to US$0.33 per share. Before this earnings report, the analysts had been forecasting revenues of US$5.95b and earnings per share (EPS) of US$0.13 in 2024. The analysts have made an abrupt about-face on Anywhere Real Estate, administering a minor downgrade to to revenue forecasts and slashing the earnings outlook from a profit to loss.
The consensus price target fell 13% to US$5.88, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Anywhere Real Estate at US$7.00 per share, while the most bearish prices it at US$4.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Anywhere Real Estate's rate of growth is expected to accelerate meaningfully, with the forecast 4.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. So it's clear that despite the acceleration in growth, Anywhere Real Estate is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that the analysts are expecting Anywhere Real Estate to become unprofitable next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Anywhere Real Estate's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Anywhere Real Estate going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Anywhere Real Estate , and understanding this should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.