BrokerageIndustry News

Realogy earnings take hit from hurricanes, inventory in third quarter

Company reports 2 percent revenue increase year over year

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In the company’s quarterly earnings results for the third quarter of 2017 (Q3 ’17), Realogy reported $1.7 billion in revenue, a 2 percent increase year over year, and 4 percent year-over-year growth in homesale transaction volume for an overall profit of $95 million for the quarter. The third quarter of 2017 proved to be a more difficult one for the company than the quarter prior, when Realogy reported profit of $106 million and operating EBITDA (earnings before interest, taxes, depreciation and amortization) of $279 million (compared to $258 million in Q3). Richard A. Smith, Realogy's chairman and chief executive officer, said in the earnings conference call: "We faced a number of challenges in the quarter. Our revenue growth of 2 percent was affected by the continuation of persistently low inventory and the hurricanes constrained the level of transactions. And our operating EBITDA was adversely affected by higher commission costs at NRT and lower employee relocation volum...