Redfin Corporation shares powered 37% higher to $9.66 on Friday after the brokerage and real estate listings company reported first-quarter 2023 revenue of $325.7 million, down from $597.4 million a year earlier but better than the $314.1 million expected by analysts polled by FactSet.
Redfin also saw its first-quarter loss shrink to $60.8 million, or $0.55 a share, from a loss of $91.6 million, or $0.86 a share, during the same period last year.
Analysts were anticipating a loss of $109.2 million, or $1.01 a share.
Over the past four quarters, the company has surpassed consensus earnings per share estimates three times, according to Zacks Equity Research.
Following Redfin’s financial results, analysts at Compass Point upgraded the stock to a ‘Hold’ from a ‘Sell’, with a $7 per share price target, pointing to the company’s progress in eliminating the properties segment and improvements at its ancillary segments to real estate services.
The analysts, however, see substantial medium-term challenges for the company to boost its market share in its core market.
Shares of Redfin have gained 118% year to date but are down more than 17% over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com