3 Key Takeaways From Redfin's Disappointing Quarter

Redfin's (NASDAQ: RDFN) second earnings report as a publicly traded company was vastly different than its first. Instead of continuing to rally, the stock rapidly reversed course, falling approximately 10% in the post-earnings trading session. The online realtor beat estimates for adjusted earnings per share of $0.11 by a penny, but reported revenue of $110.3 million, missing analyst estimates at $109.5 million. The company looked worse on a GAAP-compliant basis, reporting a loss of $0.50 per share, versus a gain of $0.03 in 2016's third quarter.

It's been a volatile year for the stock. Redfin has produced gains of approximately 40% since its initial public offering in July. However, the entirety of those gains happened in the first day of trading. If you remove the first day gains, shares of Redfin are down for the year. So what should investors make of the company's path forward? Here are three key takeaways from the third quarter.

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Source: Fool.com