RMR Group (RMR) got here out with quarterly earnings of $0.37 per share, lacking the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.46 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -9.76%. 1 / 4 in the past, it was anticipated that this actual property administration companies supplier would submit earnings of $0.41 per share when it truly produced earnings of $0.41, delivering no shock.
Over the past 4 quarters, the corporate has not been capable of surpass consensus EPS estimates.
RMR Group, which belongs to the Zacks Actual Property – Operations trade, posted revenues of $131.56 million for the quarter ended March 2021, lacking the Zacks Consensus Estimate by 14.02%. This compares to year-ago revenues of $140.86 million. The corporate has topped consensus income estimates thrice over the past 4 quarters.
The sustainability of the inventory’s speedy value motion based mostly on the recently-released numbers and future earnings expectations will principally depend upon administration’s commentary on the earnings name.
RMR Group shares have added about 3.4% because the starting of the yr versus the S&P 500’s acquire of 11.9%.
What’s Subsequent for RMR Group?
Whereas RMR Group has underperformed the market to date this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score instrument just like the Zacks Rank, which has a formidable observe report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for RMR Group was combined. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in keeping with the market within the close to future. You may see the whole checklist of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.42 on $153.34 million in revenues for the approaching quarter and $1.67 on $605.45 million in revenues for the present fiscal yr.
Buyers needs to be conscious of the truth that the outlook for the trade can have a cloth affect on the efficiency of the inventory as properly. When it comes to the Zacks Trade Rank, Actual Property – Operations is at the moment within the backside 22% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Need the most recent suggestions from Zacks Funding Analysis? In the present day, you may obtain 7 Finest Shares for the Subsequent 30 Days. Click on to get this free report
The RMR Group Inc. (RMR): Free Inventory Evaluation Report
To learn this text on Zacks.com click on right here.
Zacks Funding Analysis
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.