Technology real estate company Offerpad (NYSE: OPAD) will be announcing earnings results tomorrow after the bell. Here’s what to look for.
Offerpad beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $208.1 million, down 11.2% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates. It reported 615 homes sold, down 12.5% 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 27.7% year on year to $173.8 million, improving from the 64.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.48 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 five times over the last two years.
Looking at Offerpad’s peers in the real estate services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Marcus & Millichap delivered year-on-year revenue growth of 44.4%, beating analysts’ expectations by 20.2%, and JLL reported revenues up 15.8%, topping estimates by 1.4%. Marcus & Millichap traded up 5.4% following the results while JLL was down 3.3%.
Read our full analysis of Marcus & Millichap’s results here and JLL’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the real estate services stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.7% on average over the last month. Offerpad is down 4.3% during the same time and is heading into earnings with an average analyst price target of $3.79 (compared to the current share price of $2.24).
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