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Key Factors to Impact eXp World Holdings (EXPI) Q1 Earnings

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eXp World Holdings, Inc. EXPI is scheduled to report first-quarter 2021 financial results before market open on May 6. The company’s quarterly results will likely display year-over-year growth in revenue and earnings per share.

In the last reported quarter, this holding company for eXp Realty, Virbela and SUCCESS Enterprises, delivered net income of $7.7 million, or 5 cents per share, compared with the net income of $0.8 million, or a cent per share reported in the year-ago period. Results reflected continued rapid agent growth and increased transactions.

Over the last four quarters, it surpassed estimates on three occasions and missed in the other, the average beat being 191.67%. The graph below depicts the surprise history of the company:

Exp World Holdings, Inc. Price and EPS Surprise

Exp World Holdings, Inc. Price and EPS Surprise
Exp World Holdings, Inc. Price and EPS Surprise

Exp World Holdings, Inc. price-eps-surprise | Exp World Holdings, Inc. Quote

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

Factors at Play

eXp World Holdings is likely to have benefited in the first 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 March-end quarter.

Its cloud-based remote model has become attractive to agents and independent brokerages, especially amid the global health crisis. The company is likely to have gained from scale and operating as a remote organization.

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 anticipated to have gained from its investment in the underlying VirBELA platform.

On Mar 30, the company noted that it has exceeded 50,000 agents globally. This marked a year-over-year increase of more than 75% when compared with the 28,449 agents at the end of first-quarter 2020. The company is also focused on expansion on a global basis, launching in Puerto Rico and Brazil in the first months of 2021, and Italy and Hong Kong opening later in March.

The Zacks Consensus Estimate for quarterly revenues is currently pinned at $594 million, calling for a substantial increase of 118.9% year on year.

The consensus mark for the quarterly earnings per share has been revised a cent upward to 5 cents per share over the past two months. However, it calls for a significant increase from zero cent per share reported 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 anearnings 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 #5 (Strong Sell) 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:

The RMR Group Inc. RMR, slated to release earnings figures on May 7, has an Earnings ESP of +2.06% and holds a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cedar Realty Trust, Inc. CDR, set to report quarterly numbers on May 6, currently has an Earnings ESP of +1.54% and carries a Zacks Rank of 3.

Healthcare Trust of America, Inc. HTA, scheduled to announce first-quarter results on May 6, has an Earnings ESP of +0.33% and carries a Zacks Rank of 2, at present.

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