Technology real estate company Opendoor (NASDAQ:OPEN) will be announcing earnings results this Thursday after market close. Here’s what to look for.
Opendoor beat analysts’ revenue expectations last quarter, reporting revenues of $736 million, down 32.1% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates. It reported 1,978 homes sold, down 29.9% year on year.
Is Opendoor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Opendoor’s revenue to decline 42.4% year on year, a further deceleration from the 2.4% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Opendoor has a history of exceeding Wall Street’s expectations.
Looking at Opendoor’s peers in the consumer discretionary - real estate services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 18.2%, beating analysts’ expectations by 2.5%, and Newmark reported revenues up 27.2%, topping estimates by 13.2%. CBRE traded down 3.4% following the results while Newmark was up 1.7%.
Read our full analysis of CBRE’s results here and Newmark’s results here.
There has been positive sentiment among investors in the consumer discretionary - real estate services segment, with share prices up 6% on average over the last month. Opendoor is up 12.3% during the same time and is heading into earnings with an average analyst price target of $4.86 (compared to the current share price of $5.18).
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