Shares of Redfin Corp. RDFN, -3.76% fell more than 9% in the extended session Thursday after the real-estate brokerage swung to a profit in the third quarter but guided for a weaker-than-expected fourth quarter. Redfin earned $3.5 million, or 4 cents a share, in the third quarter, versus a loss of $30 million, or 50 cents a share, in the third quarter of 2017. Revenue rose 28% to $140 million from $109 million a year ago. Analysts polled by FactSet had expected EPS of 2 cents a share on sales of $139 million. “A housing-market correction always makes it harder to grow revenues, but our ability to do so in even challenging markets speaks to our business’s fundamental strength,” Redfin Chief Executive Glenn Kelman said in a statement. The company said it expects fourth-quarter revenue between $115.1 million and $118.3 million, compared with analyst forecasts of $121 million, according to FactSet. Redfin said it expects a net loss between $18.7 million and $16.6 million for the quarter, compared with net loss of $1.8 million in the fourth quarter of 2017 and analyst expectations of a net loss around $6 million. The fourth-quarter net loss guidance includes about $5.9 million of expected stock-based compensation, $2.2 million of expected depreciation and amortization, $2.1 million of expected interest expense from the convertible senior notes issued in July, and $1.9 million of expected interest income, Redfin said. Shares of Redfin ended the regular session down 3.8%.
Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.