Offerpad Solutions Inc. (NYSE:OPAD) Analysts Are Pretty Bullish On The Stock After Recent Results

Offerpad Solutions Inc. (NYSE:OPAD) just released its latest quarterly report and things are not looking great. It was not a great result overall, as revenues of US$133m fell 23% short of analyst expectations. Unsurprisingly, statutory losses ended up being12% larger than the analysts expected, at US$0.37 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Offerpad Solutions after the latest results.

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Taking into account the latest results, the current consensus from Offerpad Solutions' four analysts is for revenues of US$876.8m in 2026. This would reflect a sizeable 40% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 49% to US$0.77. Before this latest report, the consensus had been expecting revenues of US$886.1m and US$0.73 per share in losses. So it's pretty clear consensus is mixed on Offerpad Solutions after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

View our latest analysis for Offerpad Solutions

Although the analysts are now forecasting higher losses, the average price target rose 11% to 1.06667, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Offerpad Solutions at US$1.40 per share, while the most bearish prices it at US$1.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Offerpad Solutions' past performance and to peers in the same industry. For example, we noticed that Offerpad Solutions' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 31% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. Not only are Offerpad Solutions' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Offerpad Solutions. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Offerpad Solutions going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for Offerpad Solutions (of which 2 are significant!) you should know about.

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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.