Key Factors to Impact eXp World Holdings (EXPI) Q2 Earnings

eXp World Holdings, Inc. EXPI is scheduled to report second-quarter 2020 results on Aug 5, after the bell. The company’s quarterly results will likely display year-over-year growth in revenues and earnings per share.

In the last reported quarter, this holding company for eXp Realty and VirBELA, delivered the second profitable quarter in a row, with net income of $0.2 million or 0.00 per share. The results compared favorably with the Zacks Consensus Estimate of earnings per share of a negative 7 cents. Results reflected continued rapid agent growth and increased transactions.

Let’s see how things have shaped up prior to the second-quarter earnings release.

Factors at Play

eXp World Holdings is likely to have benefited in the second quarter, as the pandemic has led to adoption of social-distancing norms and remote working. eXp Realty is one of the fastest-growing, global residential real estate companies, and is likely to have attracted agents during the second quarter. Its cloud-based remote model has become attractive to agents and independent brokerages, especially during this challenging time. The company is likely to have gained from scale and operating as a fully-remote organization.

eXp World Holdings also owns VirBELA, which is an immersive technology platform for business, events and education, providing modern, cloud-based environment for a virtual experience for workers, attendees, students and more to communicate, collaborate, meet and socialize. These have become essential for companies’ operation for the current and post- pandemic era.

VirBELA has witnessed a substantial increase in the usage and adoption owing to its effectiveness in supporting remote work and virtual events amid social-distancing measures. Therefore, the company is likely to have gained from its investment in the underlying VirBELA platform.  

However, with the pandemic affecting the economy and the housing market, home transaction and revenue growth are likely to have been affected.

The Zacks Consensus Estimate for the June-end quarter revenues is currently pegged at $308.3 million, suggesting year-over-year 15.6% growth. The Zacks Consensus Estimate for the quarterly earnings per share has been unchanged at 2 cents per share. The company had reported a loss of 4 cents per share in the year-ago period.

Here is what our quantitative model predicts:

Our proven model does not conclusively predict a positive surprise in terms of earnings per share for eXp World Holdings this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

eXp World Holdings currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Stocks to Consider

Here are a few stocks in the broader real estate sector that you may want to consider, as our model shows that these have the right combination of elements to report a positive surprise this quarter:

Healthcare Trust of America, Inc. HTA, set to report quarterly numbers on Aug 6, currently has an Earnings ESP of +0.96% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Public Storage PSA, slated to release results on Aug 5, has an Earnings ESP of +0.41% and carries a Zacks Rank of 3, at present.

National Storage Affiliates Trust NSA, scheduled to announce earnings figures on Aug 6, has an Earnings ESP of +0.44% and holds a Zacks Rank of 3 currently.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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