Technology real estate company Opendoor (NASDAQ: OPEN) will be reporting earnings this Thursday afternoon. Here’s what investors should know.
Opendoor missed analysts’ revenue expectations last quarter, reporting revenues of $883 million, down 43.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates. It reported 2,339 homes sold, down 45.6% 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 grow 16.9% year on year, a reversal from the 33.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Opendoor rarely misses Wall Street’s revenue estimates.
Looking at Opendoor’s peers in the consumer discretionary - real estate services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. JLL delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 1.5%, and Newmark reported revenues up 12.7%, topping estimates by 2.2%. JLL traded up 17.9% following the results while Newmark was down 4.5%.
Read our full analysis of JLL’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 4.7% on average over the last month. Opendoor is down 25.5% during the same time and is heading into earnings with an average analyst price target of $3.91 (compared to the current share price of $1.73).
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