Opendoor (OPEN) Q3 Earnings Report Preview: What To Look For

Technology real estate company Opendoor (NASDAQ:OPEN) will be announcing earnings results tomorrow after market close. Here’s what to expect.

Opendoor beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $1.51 billion, down 23.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations. It reported 4,078 homes sold, down 24.2% 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 grow 29.3% year on year to $1.27 billion, a reversal from the 70.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 9.1% on average.

Looking at Opendoor’s peers in the real estate services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Compass delivered year-on-year revenue growth of 11.7%, meeting analysts’ expectations, and CBRE reported revenues up 14.8%, topping estimates by 2.7%. Compass traded up 14.3% following the results while CBRE was also up 7.7%.

Read our full analysis of Compass’s results here and CBRE’s results here.

There has been positive sentiment among investors in the real estate services segment, with share prices up 3.3% on average over the last month. Opendoor is up 7.3% during the same time and is heading into earnings with an average analyst price target of $2.04 (compared to the current share price of $1.92).

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