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Opendoor (OPEN) Reports Earnings Tomorrow: What To Expect

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

OPEN Cover Image

Technology real estate company Opendoor (NASDAQ: OPEN) will be announcing earnings results this Thursday afternoon. Here’s what you need to know.

Opendoor beat analysts’ revenue expectations by 7.8% last quarter, reporting revenues of $915 million, down 33.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates. It reported 2,568 homes sold, down 29% year on year.

Is Opendoor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Opendoor’s revenue to decline 45.1% year on year to $595 million, a reversal from the 24.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 per share.

Opendoor Total Revenue

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. Opendoor has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 7.1% on average.

Looking at Opendoor’s peers in the consumer discretionary - 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 1.6%, beating analysts’ expectations by 6.3%, and Zillow reported revenues up 18.1%, topping estimates by 0.5%. Marcus & Millichap traded up 3.4% following the results while Zillow was down 17.1%.

Read our full analysis of Marcus & Millichap’s results here and Zillow’s results here.

Investors in the consumer discretionary - real estate services segment have had steady hands going into earnings, with share prices flat over the last month. Opendoor is down 32.6% during the same time and is heading into earnings with an average analyst price target of $4.33 (compared to the current share price of $4.32).

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