Opendoor Technologies Inc. (NASDAQ:OPEN) just released its latest first-quarter results and things are looking bullish. Revenues and losses per share were both better than expected, with revenues of US$1.2b leading estimates by 8.8%. Statutory losses were smaller than the analystsexpected, coming in at US$0.16 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
NasdaqGS:OPEN Earnings and Revenue Growth May 4th 2024
Taking into account the latest results, the current consensus from Opendoor Technologies' twelve analysts is for revenues of US$5.76b in 2024. This would reflect a notable 15% increase on its revenue over the past 12 months. Losses are forecast to balloon 63% to US$0.67 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$5.88b and losses of US$0.74 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
The consensus price target was broadly unchanged at US$2.94, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Opendoor Technologies analyst has a price target of US$4.00 per share, while the most pessimistic values it at US$1.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Opendoor Technologies' growth to accelerate, with the forecast 20% annualised growth to the end of 2024 ranking favourably alongside historical growth of 16% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Opendoor Technologies to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Opendoor Technologies going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Opendoor Technologies that you need to be mindful of.
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