Opendoor Technologies OPEN is scheduled to release its first-quarter 2026 results on May 7, after market close.
OPEN’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed in one quarter, delivering an average surprise of 4.1%.
Trend in Estimate Revision of OPEN
The consensus estimate for the company’s loss per share is pegged at 5 cents, whereas it reported a loss of 9 cents in the year-ago quarter. The bottom line is expected to have been affected by weak margins.
Opendoor Technologies Inc. Price and EPS Surprise
Opendoor Technologies Inc. price-eps-surprise | Opendoor Technologies Inc. Quote
For revenues, the consensus mark is pegged at nearly $665.2 million, indicating a decrease of 42.3% from the prior-year quarter’s figure.
Factors Likely to Shape Opendoor’s Quarterly Results
Opendoor's first-quarter revenues are likely to have decreased year over year due to lower inventory levels carried into the quarter following an earlier high-spread acquisition strategy and continued clearing of older homes. The company is also expected to have seen pressure from the mix of legacy inventory, which has weighed on volumes and sales activity. In addition, a softer housing environment and pricing adjustments might have limited top-line growth.
However, these pressures are likely to have been partially offset by improving acquisition activity and better quality inventory being added during the quarter. Faster resale velocity, supported by improved pricing models and operational changes, is also expected to have supported transaction flow. Expansion of product offerings, wider geographic coverage and increased lead generation without incremental marketing spend might have provided some support to revenues.
The company is expected to report a loss per share in the first quarter due to continued investment in product development, automation and scaling efforts. Margin performance is likely to have remained under pressure from the sale of older inventory and the ongoing transition toward the new operating model. Operating costs tied to scaling the platform and improving the funnel are also expected to have weighed on profitability.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for OPEN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
OPEN has an Earnings ESP of -12.50% and a Zacks Rank of 3 at present.
Stocks That Warrant a Look
Here are a few stocks from the broader Zacks Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season:
Compass COMP has an Earnings ESP of +33.33% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
With an average surprise of 12.5%, Compass’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed in one quarter. Compass’ earnings for the to-be-reported quarter are expected to decline 240% year over year.
Cisco Systems CSCO has an Earnings ESP of +0.13% and a Zacks Rank of 2.
With an average surprise of 2.9%, Cisco’s earnings beat estimates in each of the last four quarters. Cisco’s earnings for the to-be-reported quarter are expected to increase 8.3%.
CrowdStrike CRWD has an Earnings ESP of +0.13% and a Zacks Rank of 3 at present.
For the quarter to be reported, CrowdStrike’s earnings are expected to increase 46.6%. CrowdStrike’s earnings beat estimates in each of the last four quarters, the average surprise being 6.7%.
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This article originally published on Zacks Investment Research (zacks.com).