Technology real estate company Offerpad (NYSE: OPAD) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
Offerpad met analysts’ revenue expectations last quarter, reporting revenues of $174.3 million, down 27.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates. It reported 503 homes sold, down 29.4% year on year.
Is Offerpad a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Offerpad’s revenue to decline 41.9% year on year to $165.9 million, improving from the 53.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Offerpad has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Offerpad’s peers in the real estate services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cushman & Wakefield delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2.5%, and Newmark reported revenues up 21.8%, topping estimates by 8.9%. Cushman & Wakefield traded up 4.2% following the results while Newmark was down 2.5%.
Read our full analysis of Cushman & Wakefield’s results here and Newmark’s results here.
There has been positive sentiment among investors in the real estate services segment, with share prices up 8.8% on average over the last month. Offerpad is down 30.2% during the same time and is heading into earnings with an average analyst price target of $2.24 (compared to the current share price of $1.11).
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