By Wallace Witkowski
Opendoor Technologies Inc. and Offerpad Solutions Inc. shares rallied in the extended session Wednesday after the online real-estate platforms both reported revenue and outlooks that topped the Wall Street consensus, a week after Zillow Group Inc.’s disastrous earnings.
Opendoor /zigman2/quotes/217322651/composite OPEN -2.35% shares surged 15% and Offerpad /zigman2/quotes/223113631/composite OPAD +1.01% shares gained 11% after hours, following a regular session where Opendoor shares fell 7.1% to close at $19.52 and Offerpad shares declined 3.2% to close at $7.24.
Opendoor reported a third-quarter loss of $56.8 million, or 9 cents a share, compared with $80.9 million, or 91 cents a share, in the year-ago period. Revenue surged to $2.27 billion from $338.6 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 17 cents a share on revenue of $2.01 billion.
Opendoor forecast fourth-quarter revenue of $3.1 billion to $3.2 billion, while analysts had estimated $2.92 billion.
Read: ‘The easiest thing to do is buy homes’: Offerpad CEO sees a bright future for iBuying despite Zillow’s high-profile exit
Offerpad reported a third-quarter loss of $15.3 million, or 13 cents a share, compared with $2.9 million, or 5 cents a share, in the year-ago period. Revenue rose to $540.3 million from $186.4 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 9 cents a share on revenue of $524.2 million.
Offerpad forecast full-year revenue of $1.85 billion to $1.9 billion, while analysts expect $1.84 billion.
Those reports follow Zillow’s /zigman2/quotes/204413973/composite Z +0.16% recent decision to get out of the home-flipping business after disclosing expected losses of more than $550 million in the second half of the year.
More: Zillow’s $1.2 billion of mortgage bonds in focus after company abruptly exits home-buying business