Compass stock up 10% on raised Q4 revenue and Ebitda forecasts

NEW YORK - Compass, a real estate technology company, has updated its financial outlook for the fourth quarter, projecting higher revenues and earnings before interest, taxes, depreciation, and amortization (Ebitda) than previously anticipated.

Shares in the company rose as much as 10% on the news.

The company now expects fourth-quarter revenue to be between $1.36 billion and $1.39 billion, up from its prior forecast of $1.23 billion to $1.33 billion. This revised guidance surpasses the average analyst estimate of $1.29 billion.

The company also revised its fourth-quarter adjusted Ebitda forecast to a range of $15 million to $18 million from an earlier range of $0 to $10 million, again exceeding the consensus estimate of $5.07 million.

Looking ahead to the full year of 2024, Compass has raised its revenue expectations to a range of $5.61 billion to $5.64 billion, up from the previous forecast of $5.47 billion to $5.57 billion. The estimate for 2024 revenue by analysts stood at $5.54 billion.

The adjusted Ebitda for the year is also anticipated to be higher, with the company now expecting $124 million to $127 million, compared to the prior forecast of $109 million to $119 million and the analyst estimate of $114.8 million.

Compass reiterated its free cash flow outlook for the fiscal year 2024, expressing confidence in its financial position. The company also believes that its total 2024 non-GAAP operating expenses (OPEX) will be slightly below the low-end of the previously announced range of $876 million to $896 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com