Technology real estate company Offerpad (NYSE: OPAD) will be reporting earnings this Monday after the bell. Here’s what to look for.
Offerpad missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $160.7 million, down 43.7% year on year. It was a slower quarter for the company, with a miss of analysts’ homes sold estimates and a miss of analysts’ adjusted operating income estimates. It reported 460 homes sold, down 45.7% 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 29.3% year on year to $177.4 million, a reversal from the 9.1% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.38 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. 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 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. Offerpad is down 8.7% during the same time and is heading into earnings with an average analyst price target of $1.07 (compared to the current share price of $1.26).
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