C
ompass delivered a boost to investors on Wednesday with an upgraded fourth quarter and full-year outlook. The company's stock surged over 20% following the announcement, ending a month-long decline. Compass also announced the completion of its $444 million acquisition of @properties and Christie's International Real Estate earlier this week.

    The company raised its full-year revenue projections to $5.61 billion from $5.47 billion on the low-end and to $5.64 billion from $5.57 billion on the high-end. Compass also increased its adjusted EBITDA projections to between $124 million and $127 million, up from between $109 million and $119 million. The company expects to generate positive free cash flow in the fourth quarter, a historically negative period.

    Compass added over 650 principal agents in the fourth quarter, a 50% improvement from the year-ago period. CEO Robert Reffkin attributed some of the company's outperformance to its less rate-sensitive customers, who are not affected by interest rates. The average home price transacted by Compass in the third quarter was over $1 million, with sales growing by over 5% in that category.

    Compass' stock had been stagnant as of late, but is now up to $6.80 following the announcement. Reffkin stated that the company has made progress on its goal of achieving 30% market share in its top 30 cities, currently sitting at around 20%. Compass aims to funnel listings into its "three-phased marketing strategy," which involves a listing on the MLS only in the final phase.

    Reffkin expressed optimism about the potential scrapping of the National Association of Realtors' Clear Cooperation Policy, citing the Supreme Court's recent ruling. However, he also noted that without CCP, small brokerages may struggle to compete with larger ones, as agents may be drawn to the value proposition of a large brokerage.