Technology real estate company Offerpad (NYSE: OPAD) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Offerpad missed analysts’ revenue expectations last quarter, reporting revenues of $114.1 million, down 34.5% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates. It reported 312 homes sold, down 38% year on year.
Is Offerpad a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Offerpad’s revenue to decline 46.3% year on year, a further deceleration from the 43.7% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Offerpad’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 18.2%, beating analysts’ expectations by 2.5%, and Forestar Group reported revenues up 6.6%, in line with consensus estimates. CBRE traded down 3.4% following the results while Forestar Group was up 3.3%.
Read our full analysis of CBRE’s results here and Forestar Group’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.5% on average over the last month. Offerpad is up 44.8% during the same time and is heading into earnings with an average analyst price target of $1.75 (compared to the current share price of $0.83).
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