Shares of Redfin Corp. RDFN, +2.07% fell nearly 7% late Thursday after the real-estate brokerage beat quarterly expectations but forecast slower revenue growth in the third quarter.
Redfin said it earned $3.2 million, or 4 cents a share, compared with $4.3 million in the year-ago period. Revenue increased 36% year-over-year to $142.6 million, compared with $105 million a year ago. Analysts polled by FactSet had expected earnings of 2 cents a share on sales of $139 million.
“We’re now forecasting slower revenue growth for the third quarter based on an unexpected drop in Redfin’s bookings growth in the past three weeks, slowing traffic growth in a weakening real estate market,” Chief Executive Glenn Kelman said at a post-results conference call.
Redfin called for third-quarter revenue between $137.1 million and $141.3 million. The analysts surveyed by FactSet forecast revenue of $141.5 million. In a separate press release, Redfin said it has deepened its investment in Redfin Now, where the company buys homes directly, expanding the program to a third market, Orange County, Calif. Redfin had piloted Redfin Now in California’s Inland Empire in January 2017, and expanded it to San Diego in June of last year. Redfin shares ended the regular session up 2.1%.
