Analysts Just Shaved Their Offerpad Solutions Inc. (NYSE:OPAD) Forecasts Dramatically

The analysts covering Offerpad Solutions Inc. (NYSE:OPAD) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, Offerpad Solutions' five analysts are now forecasting revenues of US$984m in 2025. This would be a modest 7.1% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 26% to US$1.68. Yet before this consensus update, the analysts had been forecasting revenues of US$1.3b and losses of US$1.12 per share in 2025. 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.

See our latest analysis for Offerpad Solutions

The consensus price target fell 26% to US$2.81, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Offerpad Solutions' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.1% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. So although Offerpad Solutions' revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Offerpad Solutions.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Offerpad Solutions analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.