Newmark's Lutnick nominated as US Commerce Secretary

NEW YORK - Newmark Group , Inc. (NASDAQ:NMRK) Executive Chairman Howard W. Lutnick has been nominated by President Donald J. Trump to become the next U.S. Secretary of Commerce. In a statement released today, Lutnick expressed his honor at the nomination and his eagerness to promote economic growth and strengthen the nation's financial security once confirmed by the U.S. Senate.

Lutnick, who also holds positions at Cantor and BGC, announced his intention to resign from these roles and divest his interests in accordance with U.S. government ethics rules. He stated that he does not plan to sell his shares on the open market as part of this process. The leadership of Newmark, under CEO Barry Gosin, is expected to maintain the company's trajectory and safeguard the interests of its clients, investors, and employees.

Newmark, a global leader in commercial real estate services, anticipates no changes to its corporate structure following Lutnick's departure. Further details are expected to be disclosed at a later date. The company, which operates nearly 170 offices worldwide and employs over 7,800 professionals, reported revenues of approximately $2.6 billion for the twelve months ending September 30, 2024.

The press release included forward-looking statements regarding Newmark's business and financial outlook, which are subject to risks and uncertainties that could cause actual results to differ materially. Newmark has stated it will not update any forward-looking statements unless required by law and has directed readers to its SEC filings for a discussion of potential risks and uncertainties.

This news article is based on a press release statement from Newmark Group, Inc.

In other recent news, Newmark Group posted impressive growth in its third quarter of 2024. The company's earnings report revealed an 18% increase in capital markets revenues, a 77% surge in mortgage brokerage volumes, and a 58% boost in Fannie Mae (OTC:FNMA) origination volumes. Total (EPA:TTEF) revenues reached $685.9 million, reflecting an 11.3% rise, while adjusted earnings per share grew by 22.2% to $0.33.

Newmark Group has ambitious plans, aiming to double its management services and servicing revenues to over $2 billion within five years. For the full year of 2024, the company expects total revenues between $2.620 billion and $2.680 billion, with adjusted EPS of $1.11 to $1.17 and adjusted EBITDA between $410 million to $430 million.

As part of recent developments, the board authorized an increase in the share buyback program to $400 million. The company also intends to expand its European presence, launching operations in Germany and growing in the UK and France. However, the company did revise its adjusted EBITDA guidance, lowering it by $4 million to $8 million due to the treatment of legal settlements.

InvestingPro Insights

As Howard W. Lutnick prepares for his potential role as U.S. Secretary of Commerce, Newmark Group, Inc. (NASDAQ:NMRK) continues to demonstrate strong financial performance. According to InvestingPro data, the company's revenue for the last twelve months as of Q3 2024 stood at $2,613.23 million, showing a robust growth of 12.15% over the same period. This aligns closely with the $2.6 billion revenue figure mentioned in the article for the twelve months ending September 30, 2024.

Newmark's stock has shown impressive momentum, with a 90.73% price total return over the past year. This significant increase reflects investor confidence in the company's performance and future prospects, even as it faces a potential leadership transition.

InvestingPro Tips highlight that Newmark is a prominent player in the Real Estate Management & Development industry, which bodes well for its continued success under CEO Barry Gosin's leadership. Additionally, the company is trading at a low revenue valuation multiple, suggesting there may be room for further growth in its stock price.

For investors seeking a deeper understanding of Newmark's potential, InvestingPro offers 12 additional tips that could provide valuable insights into the company's financial health and market position. These additional tips could be particularly useful in assessing the company's outlook as it navigates the upcoming changes in its executive leadership.

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