Calabasas brokerage firm Marcus & Millichap Inc. broke yearly records in 2015 with financials that beat Wall Street estimates and gave a 3-plus percent boost to its share price.
The company reported net income of $19.9 million (51 cents a share) for the fourth quarter ended Dec. 31, compared to $16.4 million (42 cents a share) for the year-ago period. Revenue grew 18 percent to $203 million.
Analysts on average expected net income of 45 cents a share on revenue of $188 million, according to Thomson Financial Network.
The company attributed quarterly growth to higher revenues from brokerage commissions, which increased because of a greater number of investment sales and a rise in the average rates of those commissions. Over the same period, Marcus & Millichap increased salaries, compensation for managers and its offices, accounting for an 11.4 percent jump in selling and general and administrative costs.
For the full-year that ended Dec. 31, the brokerage’s net income soared 34 percent to $66.4 million ($1.69 a share) compared to $49.5 million ($1.27 a share) for 2014. Analysts estimated $1.63 a share. Revenue grew by 20.4 percent to $689 million, compared to $572 million for the prior year. Analysts expected $673.74 million.
The year broke records in earnings and revenue, said outgoing Chief Executive John Kerin, who is set to retire March 31 and will immediately be replaced by Hessam Nadji, the firm’s senior executive vice president.
The company announced results after market close on Thursday. Shares closed Friday up 77 cents or 3.2 percent to $24.95 on the New York Stock Exchange.