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September 01, 2020 1:28pm
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Redfin (RDFN) To Report Earnings Tomorrow: Here Is What To Expect

RDFN Cover Image

Real estate technology company Redfin (NASDAQ:RDFN) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Redfin beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $295.2 million, up 7.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ earnings estimates but underwhelming EBITDA guidance for the next quarter. It reported 14,178 video customers, up 3.4% year on year.

Is Redfin a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Redfin’s revenue to grow 4.4% year on year to $280.7 million, a reversal from the 55.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.21 per share.

Redfin Total Revenue

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 five times over the last two years.

Looking at Redfin’s peers in the real estate services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Compass delivered year-on-year revenue growth of 11.7%, meeting analysts’ expectations, and CBRE reported revenues up 14.8%, topping estimates by 2.7%. Compass traded up 14.3% following the results while CBRE was also up 7.7%.

Read our full analysis of Compass’s results here and CBRE’s results here.

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 7.6% during the same time and is heading into earnings with an average analyst price target of $8.57 (compared to the current share price of $11.04).

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