Goldman Sachs Cuts Compass Earnings Estimates Amid Housing Market Weakness
Goldman Sachs has reaffirmed its Neutral rating on Compass Inc.'s stock despite revising down its third-quarter earnings estimates due to a weak US housing market. The firm expects Compass's EBITDA to reach $281 million, below the consensus estimate of $289 million and its previous forecast of $302 million.
The deterioration in the housing market is attributed to affordability pressures, with the average 30-year fixed-rate mortgage rising to 6.95% as of September 17, 2026, according to Freddie Mac. Compass's shares have delivered a 30% return over the past six months but have declined 2.2% over the past week.
The firm expects Compass to outperform the broader housing market due to its premium market focus and inventory strategy. Goldman Sachs has adjusted its operating expense estimates for the second half of 2026, with expenses expected to reach $718 million in the third quarter and $693 million in the fourth quarter.