red fin (NASDAQ:RDFN) the stock slips on Friday after the release of its fourth quarter 2021 earnings report.
Let’s dive into this report below to see what is driving RDFN stock down today!
- The big problem for Redfin comes from its forecast for the first quarter of 2022.
- This makes him expect a total net loss of $122 million and $115 million.
- To put that into perspective, the real estate company’s total net loss in the first quarter of 2021 was $36 million.
- This results in an otherwise good earnings report from Redfin.
- That includes earnings per share of -27 cents, better than the -31 cents Wall Street expected.
- However, it is also a negative change from the 11 cents per share reported in the same period a year earlier.
- Revenue of $643.1 million also beat analysts’ expectations of $598.77 million during the period.
- This is also a 163% increase from the $244.52 million reported in the fourth quarter of 2020.
- Finally, the revenue forecast of $535-560 million for the first quarter of 2022 is better than Wall Street’s estimate of $524.59 million.
Glenn Kelman, CEO of Redfin, said the following in the fourth quarter earnings report, dropping RDFN shares today.
“Redfin is expanding its sources of customer value and business revenue, with title, mortgage and iBuying now on track to generate gross profits, after years of being subsidized by our brokerage. Entering on an uncertain market, Redfin’s pricing power and on-demand service will allow us to gain market share and improve our operating margins.”
Intense exchanges after Redin’s earnings report today. This has some 8 million shares changing hands at the time of this writing. For the record, the company’s average daily trading volume is closer to 1.2 million shares.
RDFN stock is down 24.8% on Friday afternoon.
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As of the date of publication, William White had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
Article printed on InvestorPlace Media, https://investorplace.com/2022/02/redfin-stock-news-why-is-rdfn-down-big-today-9-things-for-investors-to-know/.
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