WASHINGTON (dpa-AFX) - Real estate and relocation service provider Realogy Holdings Corp. (RLGY), said Tuesday it expects to post a narrower net loss for the first quarter amid gains from an increase in sales volumes.
The company said earnings were negatively impacted by amortization costs and interest expense, even as it expects revenues to grow in the range of 9 to 10 percent in the quarter.
Investors were not impressed with the results and shares of the company lost about 8 percent in after-hours trade on the New York Stock Exchange.
Realogy, which is controlled by Apollo Global Management LLC (APO), made its market debut in October last year. The company was taken private by Apollo in 2007, when home prices went southwards.
The New Jersey-based company expects to report a first-quarter net loss of $69 million to $78 million.
Analysts polled by Thomson Reuters currently estimate a loss of $0.42 per share for the quarter. Analysts' estimates typically exclude special items.
Net loss includes about $89 million of interest expense and nearly $42 million of depreciation and amortization.
In the same period last year, Realogy recorded a net loss of $192 million, when interest expense was even steeper.
Realogy expects quarterly revenues of of $950 million to $960 million, compared to $875 million a year ago.
Sales volume for the quarter was up 14 percent from last year, with growth at the franchise (RFG) and company-owned (NRT) real estate services segments.
RFG recorded a 9 percent increase in average homesale price during the quarter, while NRT had a 6 percent growth.
Moving forward, Realogy said pricing continues to react to low inventory levels as demand exceeds available supply. The company expects sales volume percentage increases in the low- to mid-teens in the second quarter at the RFG and NRT segments combined.
Realogy also announced an underwritten public offering of 35 million shares of its common stock by certain funds affiliated with Apollo. Realogy will not receive any proceeds from the offering.
RLGY closed Tuesday at $44.80, down 2.27%, on a volume of 1.3 million shares. In after hours, the stock dropped $3.57 or 7.97%.
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