Opendoor (OPEN) Earnings Q1: What to Expect

Tech real estate company Opendoor ( NASDAQ:OPEN ) will report earnings tomorrow after hours. Here’s what investors should know.

Opendoor beat analysts’ revenue expectations by 5.1% last quarter, reporting revenue of $870 million, down 69.5% from a year earlier. It was a decent quarter for the company, with an impressive increase in analysts’ earnings estimates, but revenue guidance for the next quarter missing analysts’ expectations.

Is Opendoor a buy or sell that leads to earnings? Read our full review here, it’s free.

This quarter, analysts expect Opendoor’s revenue to fall 65.2% year-over-year to $1.09 billion, a further deceleration from the 39.4% decline seen in the same quarter last year last. Adjusted loss is expected to come in at -$0.16 per share.

Most analysts who cover the company have reconfirmed their estimates in the past 30 days, suggesting that they anticipate the business to maintain its earnings trajectory. Opendoor has missed Wall Street’s revenue estimates just once in the past two years, beating top-line expectations by 10.1% on average.

Looking at Opendoor’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us an indication of what to expect. Anywhere Real Estate posted flat year-over-year revenue, missing analysts’ expectations by 1.8 percent, and Cushman & Wakefield reported a 2.9 percent decline in revenue, in line with consensus estimates. Anywhere Real Estate fell 4.6% following the results, while Cushman & Wakefield also fell 2.7%.

Read our full analysis of Anywhere Real Estate’s results here and Cushman & Wakefield’s results here.

Valuation multiples for many growth stocks have yet to return to early 2021 highs, but the market was bullish in late 2023 due to cooling inflation. The start of 2024 was a different story as mixed signals led to market volatility and while some of the consumer discretionary stocks fared slightly better, they were not spared, with share prices down an average of 5.9 % in the last month. Opendoor is down 29.5% over the same time and is headed for earnings with an average analyst price target of $3 (compared to the current share price of $1.96).

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