Redfin Corp (NASDAQ:RDFN) is trading lower Friday morning after the company reported fourth-quarter financial results and issued guidance for expanding losses.
Redfin reported quarterly revenue of $643.1 million, which beat the $598.76 million estimate. The company reported an earnings loss of 27 cents per share, which beat the estimate for a loss of 31 cents per share.
"Fourth-quarter revenues and net income exceeded our expectations," said Redfin CEO Glenn Kelman. "Entering an uncertain market, Redfin’s pricing power and on-demand service will let us take share and improve operating margins."
Redfin expects first-quarter revenue to be between $535 million and $560 million versus the estimate of $524.59 million. The company said it expects total net loss to be between $122 million and $115 million, compared to a net loss of $36 million in the first quarter of 2021.
Following Redfin's results, RBC Capital analyst Brad Erickson downgraded the stock from an Outperform rating to a Sector Perform rating and lowered the price target from $60 to $23.
Redfin is an internet-based real estate broker that pays its agents a salary opposed to the traditional model of splitting a percentage of total commission, allowing it to charge homesellers a smaller fee to list.
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RDFN Price Action: Redfin has traded as high as $98.44 over a 52-week period. It's making new 52-week lows Friday.
The stock was down 24% at $21.77 at time of publication.
Photo: paulbr75 from Pixabay.
