Opendoor (OPEN) reports Q3: everything you need to know ahead of earnings

What happened

Opendoor is scheduled to report earnings Thursday afternoon. Last quarter, it reported revenue of $883 million, down 43.7% year on year, and sold 2,339 homes, down 45.6%. Analysts expect revenue this quarter to grow 16.9% year on year.

Confirmed

Global impact / market context

The expected return to revenue growth would mark a change from the sharp decline described for the prior-year quarter. If sales improve, Opendoor could generate more revenue from home transactions; if not, the earlier weakness in revenue and homes sold may remain a concern for investors.

Analyst inference

Analysts have generally reconfirmed their estimates over the past 30 days, while real-estate services peers JLL and Newmark reported revenue growth of 11.8% and 12.7%. Those results provide context, but their businesses may not predict Opendoor’s own results.

Confirmed

What to watch

1. Compare reported revenue with analysts’ expected 16.9% year-on-year growth to see whether Opendoor’s sales are recovering from the decline described last quarter. Analyst inference
2. Check the number of homes sold against last quarter’s 2,339, because transaction volume can influence revenue when the company buys and sells homes. Analyst inference
3. Review earnings for updates on costs and profit, since the article says last quarter’s EBITDA, a measure of operating performance, missed analysts’ estimates. Analyst inference

Evidence

• stockstory.org