Investors were leaving Redfin‘s (NASDAQ:RDFN) house at the end of the week. On Friday, the prominent online real estate company posted its latest set of quarterly figures, and the stock promptly traded down. As of mid-afternoon, it had declined by over 8%.
On a year-over-year basis in its second quarter, Redfin managed to more than double its revenue to $471 million. Net loss, however, deepened considerably. It was $27.9 million according to GAAP standards, or $0.29 per share, compared to the year-ago shortfall of $6.6 million.
Both figures were notably better than analyst projections. Collectively, prognosticators following Redfin stock were modeling just over $455 million on the top line, and a deeper per-share net loss of $0.33.
Redfin had several tailwinds at its back during the quarter. Interest rates remain temptingly low for would-be home buyers, while the sluggish growth of new housing stock drives demand (and thus prices) upwards.
In the earnings release, CEO Glenn Kelman said that “Even in a rapidly expanding market, Redfin gained more market share in the second quarter than at any point since our 2017 initial public offering.”
Redfin proffered Q3 guidance, in which it’s forecasting revenue of $530 million to $541 million, and a net loss of $20 million to $24 million ($0.19 to $0.23 per share). The former is well above the consensus analyst estimate of $488 million, however the latter is nowhere near the $0.03 estimated per-share net profit. So perhaps investors aren’t happy about the likely continuing flow of red ink from Redfin.
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