Preparing for the full year earnings results of REA Group

Real estate listings portal, REA Group Limited, is gearing up to release its highly anticipated earnings report.

With its shares up 32% in 2019 and trading within a whisker of an all-time high, REA Group will need to deliver on expectations if its shares are to continue their ascent.

What is the market expecting from REA Group?

According to a note out of Goldman Sachs, it expects the company to report revenue growth of 11% to $894 million for the full year. This is in line with the market consensus estimate.

In respect to earnings, the broker expects REA Group to report a slowdown in EBITDA growth to 2% in the fourth quarter. Whilst this might sound disappointing, it is largely expected by the market due to the negative impact of the Federal election on listing volumes.

In light of this, it expects full year EBITDA of $516 million, which will be an 11% year on year increase and a touch lower than the market consensus estimate of $522 million.

And finally, Goldman has forecast a 10% lift in net profit after tax to $307 million. This compares to the market consensus estimate of $313 million.

What else should you look out for?

Arguably the most important thing to look out for with REA Group’s will be an update on current trading conditions and its outlook for FY 2020.

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