Redfin Slumps Despite Quarterly Beat, Bullish Analyst Reaction

Redfin reported earnings and revenue ahead of expectations, but was down big Thursday.
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Shares of online real estate brokerage Redfin Corp.  (RDFN) - Get Report fell sharply Thursday despite the company reporting fourth-quarter results that beat expectations and providing revenue guidance ahead of consensus estimates.

The Seattle company reported earnings of 11 cents per share on revenue of $244.5 million after the close on Wednesday. Analysts were expecting earnings of 4 cents per share on revenue of $233.5 million. 

For the first quarter, the company said it expects revenue between $249 million and $255 million, while analysts are expecting revenue of $231.8 million. 

Redfin shares were down 14.5% to $78.31 at last check.

Here's what analysts said about the company:

Stifel maintained its hold rating while raising its price target to $78 from $65 per share. "Redfin would have grown faster save for staffing-related bottlenecks across numerous segments that it expects will persist," through the first half of the year, Stifel said, according to Bloomberg. 

Piper Sandler maintained its overweight rating while raising its price target to $99 from $73 per share while the company "remains agent capacity constrained but should easily achieve another year of record growth."

KeyBanc maintained its sector weight rating while saying "Redfin posted a very strong 4Q, but remains capacity constrained given strong housing trends."

William Blair maintained its market perform rating while saying that the results and outlook were strong and the momentum "likely reflects strong execution and favorable housing trends."

And Wedbush maintained its outperform rating and $109 price target, saying "the strength in the housing market is continuing to drive material benefits to Redfin, where it is having trouble keeping up with demand." The firm advised investors to buy the dip because Redfin remains "exceptionally well-positioned."