The analysts covering Offerpad Solutions Inc. (NYSE:OPAD) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from Offerpad Solutions' five analysts is for revenues of US$984m in 2025, which would reflect a credible 7.1% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 26% to US$1.68 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$1.3b and losses of US$1.12 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

View our latest analysis for Offerpad Solutions

The consensus price target fell 26% to US$2.81, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Offerpad Solutions' past performance and to peers in the same industry. For example, we noticed that Offerpad Solutions' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.1% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.6% 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 10% annually for the foreseeable future. So although Offerpad Solutions' revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Offerpad Solutions' revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Offerpad Solutions analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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