Stock Story -
Real estate technology company Redfin (NASDAQ:RDFN) will be announcing earnings results tomorrow after market close. Here's what to expect.
Redfin beat analysts' revenue expectations by 3.6% last quarter, reporting revenues of $225.5 million, up 5.3% year on year. It was a solid quarter for the company, with revenue guidance for next quarter exceeding analysts' expectations and a narrow beat of analysts' earnings estimates.
Is Redfin a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Redfin's revenue to grow 5.8% year on year to $291.6 million, a reversal from the 54.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.27 per share.
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. Redfin has missed Wall Street's revenue estimates six times over the last two years.
Looking at Redfin's peers in the real estate services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Opendoor (NASDAQ:OPEN)'s revenues decreased 23.5% year on year, beating analysts' expectations by 2.9%, and Newmark reported revenues up 8.1%, in line with consensus estimates. Opendoor traded down 12.6% following the results.
Read the full analysis of Opendoor's and Newmark's results on StockStory.
There has been positive sentiment among investors in the real estate services segment, with share prices up 3.3% on average over the last month. Redfin is up 15.5% during the same time and is heading into earnings with an average analyst price target of $7.1 (compared to the current share price of $7.39).
