Technology real estate company Opendoor (NASDAQ: OPEN) will be announcing earnings results this Tuesday after market hours. Here’s what you need to know.
Opendoor beat analysts’ revenue expectations by 9.3% last quarter, reporting revenues of $1.15 billion, down 2.4% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It reported 2,946 homes sold, down 4.3% year on year.
Is Opendoor a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Opendoor’s revenue to be flat year on year at $1.50 billion, improving from the 23.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at Opendoor’s peers in the real estate services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 16.2%, beating analysts’ expectations by 4.3%, and Newmark reported revenues up 19.9%, topping estimates by 10.7%. CBRE traded up 7.3% following the results while Newmark was also up 4.7%.
Read our full analysis of CBRE’s results here and Newmark’s results here.
Investors in the real estate services segment have had steady hands going into earnings, with share prices flat over the last month. Opendoor is up 255% during the same time and is heading into earnings with an average analyst price target of $1.17 (compared to the current share price of $2.22).
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