Shares of home brokerage Compass (NYSE:COMP) slumped more than 17% to $6.39 on Friday, following the company's Q1 earnings report and a weaker-than-expected revenue forecast for Q2.
For Q1, Compass reported revenue of $1.36 billion, falling short of the analysts' estimate of $1.42 billion.
The company also warned that Q2 revenue would be in the range of $2 billion to $2.15 billion, with the midpoint of that range coming in below the analyst forecast of $2.12 billion, based on data compiled by LSEG.
The disappointing earnings and outlook led to downward revisions from multiple analysts.
Brokerage firm Oppenheimer lowered its price target for Compass to $12 from $13, citing tariff uncertainty that has been driving lower transaction volumes.
Barclays also reduced its price target, cutting it to $8 from $9, noting that Compass was not immune to the broader market conditions, especially with volatility increasing in March and April.
Despite the recent drop, Compass has seen a 32% rise in its stock price year-to-date, reflecting investor optimism earlier in the year.