Redfin Stock Nails Its First Open House
Redfin (NASDAQ: RDFN) has been one of this year's hottest IPOs, and on Thursday, it had its first chance to earn those gains with its first quarterly report as a public company. It was a strong showing, but this doesn't mean that a strong start is a surprise.
Revenue climbed 35% to $104.9 million for the second quarter, and net income more than tripled to $4.3 million or $0.06 a share. Anyone thumbing through Redfin's prospectus this summer -- coming out shortly after the fiscal period came to a close -- would've seen the next-gen real estate brokerage offer preliminary results for the quarter. It was targeting $104.5 million to $104.9 million in revenue for the three months ending in June. It was eyeing a profit of $3.7 million to $4.3 million.
It's probably not a coincidence that Redfin landed at the high end of both ranges. The debutante gets it. If you're going to put out guidance for a quarter that already ended you better make sure that you already landed at the high end. You don't want to disappoint investors in your first quarterly report after an IPO, since you never get a second chance to make a first impression.
Source: Fool.com
