One thing we could say about the analysts on Offerpad Solutions Inc. (NYSE:OPAD) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following this downgrade, Offerpad Solutions' five analysts are forecasting 2024 revenues to be US$995m, approximately in line with the last 12 months. Losses are expected to be contained, narrowing 19% per share from last year to US$1.98 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$1.2b and losses of US$1.71 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Offerpad Solutions

The consensus price target fell 27% to US$4.94, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would also point out that the forecast 3.2% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 13% annually over the past three years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 11% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Offerpad Solutions to suffer worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Offerpad Solutions. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Offerpad Solutions analysts - going out to 2026, and you can see them free on our platform here.