Analysts Estimate RE/MAX (RMAX) to Report a Decline in Earnings: What to Look Out for

RE/MAX (RMAX) is expected to report a year-over-year decline for the quarter ended June 2025, with consensus estimates projecting EPS of $0.35 (-14.6%) on revenues of $73.47 million (-6.4%). Despite a recent 11.54% downward revision in EPS estimates, the company holds a positive Zacks Earnings ESP of +1.45%, suggesting some recent bullish analyst sentiment. However, its Zacks Rank #4 (Sell) makes a definitive earnings beat prediction difficult, even though RMAX has historically beaten consensus EPS estimates in the past four quarters.

Analysis

RE/MAX (RMAX) is approaching its June 2025 earnings report with a decidedly negative consensus outlook, expecting a year-over-year earnings decline of 14.6% to $0.35 per share and a revenue drop of 6.4% to $73.47 million. This pessimistic view is reinforced by a significant 11.54% downward revision in the consensus EPS estimate over the last 30 days, signaling that covering analysts have become more bearish on the company's near-term prospects. However, the situation presents conflicting signals. The company has a strong history of outperformance, having beaten consensus EPS estimates for the last four consecutive quarters. Furthermore, the Zacks Earnings ESP is positive at +1.45%, indicating that the most recent analyst revisions are actually more bullish than the broader consensus. This positive indicator is directly contradicted by the stock's Zacks Rank of #4 (Sell), which, according to the provided methodology, makes it difficult to conclusively predict an earnings beat despite the positive ESP. The combination of deteriorating fundamental expectations and a poor quant rank against a history of positive surprises and bullish last-minute revisions creates a high degree of uncertainty around the upcoming report.

Key Decisions for Investors

• Given the consensus for a significant year-over-year decline in earnings and revenue, coupled with a Zacks #4 (Sell) rank, investors should approach the upcoming earnings with caution as the primary indicators point to fundamental weakness.
• Despite the negative backdrop, traders should note the potential for a short-term upside surprise, given the company's four-quarter streak of beating estimates and a positive +1.45% Earnings ESP, though a beat on lowered expectations may not drive a sustained rally.
• The most critical factor will be management's forward-looking commentary on business conditions during the earnings call, which will be essential for resolving the conflicting data points and determining the stock's direction post-announcement.