Calabasas commercial real estate brokerage Marcus & Millichap Inc. (MMI) reported third-quarter earnings Thursday that exceeded analysts’ expectations.
For the period ended Sept. 30, net income dipped to $15.1 million (39 cents a share) from $15.2 million (39 cents a share) for the same year-ago period. That beat analysts’ expectations by a penny, according to Thomson Financial Network.
Revenue rose 8.9 percent to $181 million, compared to $166 million a year ago, outpacing analysts’ forecasts of $170 million.
Marcus & Millichap said its focus is on growing the segment of its business dealing with $20 million-plus deals, which increased 26.8 percent over the quarter compared to a year ago. While that helped boost revenue, the company had to pay out a greater number of larger commissions, as those pricier deals are usually negotiated by more senior brokers who earn higher commissions. As a result, operating expenses rose 12.5 percent over the quarter, mainly because of an 11.6 percent jump in commissions and compensation-related costs.
The company reported results late Thursday. Shares closed Friday down 18 cents, or nearly 1 percent, to $23.59 on the New York Stock Exchange.