Technology real estate company Offerpad (NYSE: OPAD) will be reporting results tomorrow after market hours. Here’s what investors should know.
Offerpad missed analysts’ revenue expectations by 11.4% last quarter, reporting revenues of $251.1 million, up 9.1% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations. It reported 742 homes sold, up 14.2% 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 12.6% year on year to $204.6 million, improving from the 71.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.35 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 twice over the last two years.
Looking at Offerpad’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.
Investors in the real estate services segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Offerpad is down 7.7% during the same time and is heading into earnings with an average analyst price target of $4.44 (compared to the current share price of $3.12).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
