Following an earnings report where the company beat expectations and posted its best third quarter ever, Realogy’s stock price is soaring to pre-pandemic levels and an eight-month high. The company stock was trading at around $12 per share as of 2:45 p.m., Thursday, the highest level since February 25.
Realogy closed the day Wednesday trading at $9.88 per share, then spiked in light of an earnings report where the company revealed it posted $1.9 billion in revenue and net income of $145 million from continuing operations.
“In the third quarter, Realogy continued to execute from a position of strength, delivering exceptional top-line and bottom-line growth,” Charlotte Simonelli, Realogy’s executive vice president, chief financial officer and treasurer, said in a statement accompanying the earnings.
“We improved operating margins, captured greater share of transaction economics with our mortgage joint venture and title operations, stayed laser-focused on cost management and simplification, and strengthened our balance sheet,” Simonelli added. “Overall, Realogy’s financial profile is much stronger today, and I am optimistic for our future.”
Realogy was one of the real estate companies hit hardest by the early days of COVID-19, and its share price had been posting one of the slower recoveries. Realogy’s stock fell to below $2.50 in mid-March, as stay-at-home orders shut down many real estate markets.
Outside of the weeks in February leading up to the pandemic, the $12 per share that Realogy was trading at on Wednesday was the highest the company’s stock has been since April 2019.
The tailwinds of the current pandemic’s impact on the real estate market have led to record-high share prices for some real estate companies — Redfin, Zillow and eXp World Holdings are all at record-highs this year — but Realogy still has a ways to go to recapture even the $35 per share it was trading at in 2017.