Offerpad (OPAD) Q1 Earnings Report Preview: What To Look For

Jabin Bastian /
2024/05/05 3:03 am EDT

Technology real estate company Offerpad (NYSE:OPAD) will be reporting earnings tomorrow afternoon. Here's what to look for.

Offerpad missed analysts' revenue expectations by 4.7% last quarter, reporting revenues of $240.5 million, down 64.5% year on year. It was a weak quarter for the company, with a miss of analysts' homes sold estimates and revenue guidance for next quarter missing analysts' expectations.

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 55.7% year on year to $270.2 million, in line with the 55.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.40 per share.

Offerpad Total Revenue

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 Q1 results, giving us a hint as to what we can expect. RE/MAX's revenues decreased 8.3% year on year, beating analysts' expectations by 1.3%, and CBRE reported revenues up 7.1%, in line with consensus estimates. RE/MAX traded up 7.5% following the results.

Read our full analysis of RE/MAX's results here and CBRE's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the real estate services stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Offerpad is up 3.1% during the same time and is heading into earnings with an average analyst price target of $8.6 (compared to the current share price of $7.4).

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