Analysts Have Just Cut Their Opendoor Technologies Inc. (NASDAQ:OPEN) Revenue Estimates By 11%

Today is shaping up negative for Opendoor Technologies Inc. (NASDAQ:OPEN) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Opendoor Technologies' twelve analysts are now forecasting revenues of US$5.2b in 2024. This would be a notable 14% improvement in sales compared to the last 12 months. Per-share losses are expected to see a sharp uptick, reaching US$0.66. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$5.8b and losses of US$0.61 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for Opendoor Technologies

The consensus price target fell 20% to US$2.04, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Opendoor Technologies' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Opendoor Technologies is forecast to grow faster in the future than it has in the past, with revenues expected to display 29% annualised growth until the end of 2024. If achieved, this would be a much better result than the 2.5% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. So it looks like Opendoor Technologies is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Opendoor Technologies. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Opendoor Technologies going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Opendoor Technologies going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.