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What Awaits Opendoor Technologies (OPEN) in Q1 Earnings?

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Opendoor Technologies Inc. (OPEN - Free Report) is scheduled to release first-quarter 2021 results on May 11, after market close.

Let’s check out the expectations in detail.

Q1 Expectations

The Zacks Consensus Estimate for revenues is pegged at $623.01 million, indicating significant growth of more than 100%, sequentially. The reported figure lies within the guided range of $600-$625 million.

The top line is likely to have benefited from increasing demand for Opendoor’s service, solid home resale performance and an increase in home purchases (which had been temporarily paused in March last year due to the onset of the pandemic).

Though the temporary discontinuation of buying and selling of homes in inventory during the second and third quarters of 2020 had weighed on the company’s 2020 revenues, the company started rebuilding its inventory in the fourth quarter of 2020 and is hopeful of returning to sequential revenue growth in the first quarter of 2021.

The Zacks Consensus Estimate is pegged at loss of 48 cents per share, indicating a sequential decline of more than 100%.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Opendoor Technologies this season. 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’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Opendoor Technologies has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on their respective earnings.

Interpublic (IPG - Free Report) has an Earnings ESP of +3.37% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.71% and a Zacks Rank #2.

Fidelity National Information Services (FIS - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #3.

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