Fathom Holdings Inc Down 13.01% To $2.14 After Earnings Miss

Fathom Holdings Inc (FTHM) missed earnings estimates for Q4 2023 this afternoon.

Wall Street earnings per share (EPS) projections for Fathom Holdings Inc were at a loss of $0.32 per share. The company missed those estimates with an EPS loss of $0.50 per share. The loss of $0.50 per share (which represents a -56% EPS surprise) led to the company's profits rising 21% compared to last year when the firm reported an EPS loss of $0.63 per share. The increase in Fathom Holdings Inc's annual growth rate represents how the business is performing well amid recent economic conditions.

Analyst projections for Fathom Holdings Inc revenue came in at a consensus of $81 million. Fourth-Quarter revenues missed estimates for $74.1 million by $6.9 million (9%). The company achieved negative 11% growth year-over-year compared to the firm's revenue of $83.4 million from the year-ago quarter. The higher earnings growth relative to revenue signals Fathom Holdings Inc has improved its profit margin.

The stock is down 13.01% to $2.14 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Fathom Holdings Inc a Bearish Sentiment Rank from InvestorsObserver.

Fathom Holdings Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 9, putting Fathom Holdings Inc in the bottom 25% of stocks. The firm set a 52-week low on November 29, 2023 at $2.1 and set a 52-week high on July 31, 2023 at $8.2.

Fathom Holdings Inc is a cloud-based, technology-driven platform-as-a-service company operating in the real estate industry. Its low-overhead business model leverages proprietary software platform for management of real estate brokerage back-office functions, without the cost of physical brick and mortar offices or of redundant personnel. The company recognizes revenue primarily through the commissions that its agents charge their clients.