Shares of discount real estate brokerage Redfin tumbled nearly 9% Friday as the company reported solid growth, but reaffirmed strong headwinds in the housing market. Net income was $10.6 million in the third quarter, up from $5.7 million in the year-ago period, and revenue rose 35%. The company’s GAAP net loss per diluted share was 50 cents, compared with a net income per diluted share of 3 cents a share in the third quarter of 2016. Analysts polled by FactSet had expected GAAP per-share earnings of 12 cents a share. The company reported its market share had increased by 14 basis points to 0.71%, an acceleration in share growth, while web site traffic was up 38%. Still, the housing market remains extremely constrained by tight inventory, and the company expects to book a loss of between $6.0 and $3.9 million in the fourth quarter. Analysts surveyed by FactSet have a consensus per-share loss of 22 cents for the full year. “We continue to like the company’s long-term prospects and disruptive business model but view risk/reward as balanced in the near-term,” wrote Stifel analysts Friday morning. Shares are down 8.81% for the year to date, compared to a 15.5% gain for the S&P 500 and a 10.9% increase for Zillow Group , which is often considered the industry leader in real estate brokerages.
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