Shares of Opendoor Technologies Inc. (OPEN) jumped 14.8% in the extended trading session on Wednesday after the digital platform for residential real estate reported upbeat results for the third quarter of 2021.
Results in Detail
The company reported a smaller-than-expected loss per share of $0.09 against the consensus estimate of $0.17 per share. Opendoor had reported a loss of $0.91 per share in the same quarter last year.
Total revenue of $2.27 billion surpassed the Street’s estimate of $2.01 billion. The company had reported revenue of $338.6 million in the prior-year quarter.
Adjusted EBITDA came in at $35 million, compared to negative $21 million in the same quarter last year. Additionally, adjusted contribution margin stood at 7%, up from 4.8% in the year-ago period. (See Opendoor stock charts on TipRanks)
At the quarter-end, the company expanded to 44 markets, including 5 new market launches. Additionally, it purchased 15,181 homes.
Guidance
The CEO of Opendoor, Eric Wu, said, “We continue to see strong consumer demand and are reiterating the expectations that we laid out last quarter, effectively pulling forward our original three-year financial plan by two years.”
For the fourth quarter of 2021, the company projects revenue to be in the range of $3.1 billion to $3.2 billion versus the consensus estimate of $2.92 billion. Adjusted EBITDA is projected to be in the range of negative $5 million to positive $5 million.
See Insiders’ Hot Stocks on TipRanks >>
Wall Street’s Take
Overall, the stock has a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Opendoor price target of $31.67 implies 62.24% upside potential from current levels. Shares have gained 8.3% over the past year.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 78% Bullish on OPEN, compared to a sector average of 71%.
Related News:
Amazon Expands in Alabama with New Operational Sites
Pfizer & Biohaven Join Hands for Commercialization of Rimegepant
Upstart Provides Upbeat Q4 Outlook on Better-than-Expected Q3 results
