Opendoor Technologies Inc. (NASDAQ:OPEN) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at US$883m, but statutory earnings fell catastrophically short, with a loss of US$0.17 some 137% larger than what the analysts had predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the most recent consensus for Opendoor Technologies from nine analysts is for revenues of US$3.96b in 2026. If met, it would imply a major 22% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 70% to US$0.47. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.93b and losses of US$0.37 per share in 2026. While this year's revenue estimates held steady, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 5.1% to US$4.70per share, with the analysts clearly concerned by ballooning losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Opendoor Technologies, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$2.65 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Opendoor Technologies' past performance and to peers in the same industry. For example, we noticed that Opendoor Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 48% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 19% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.3% annually. Not only are Opendoor Technologies' 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 take away is that the analysts increased their loss per share estimates for next year. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Opendoor Technologies' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Opendoor Technologies going out to 2028, and you can see them free on our platform here.

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.