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Earnings Results: Stocks of Zillow rivals Opendoor, Offerpad rally after sales, forecasts top Street

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
OPEN,
-7.05%

shares surged 15% and Offerpad
OPAD,
-3.21%

shares gained 5% 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
Z,
-3.21%

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

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