Zillow Group, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Zillow Group reported adjusted earnings of 55 cents per share for the quarter ended September 30, up from 44 cents a year earlier but below analysts’ 59-cent expectation. Revenue rose 7.1% to $724 million, short of the $753.35 million expected, while reported earnings were a loss of 70 cents per share and the company recorded a $158 million quarterly loss.

Confirmed

Global impact / market context

Revenue growth shows the business brought in more money than a year earlier, but the shortfall against forecasts and quarterly loss point to pressure on financial performance. If revenue continues to miss expectations, investors could reassess expected earnings and the company’s ability to fund its operations from cash available.

Analyst inference

Analysts’ average earnings estimate had fallen about 8.7% over three months, and two analysts cut estimates in the latest 30 days, suggesting expectations were already being lowered. The average rating remained “buy,” but the results missed forecasts and shares had fallen 54.6% year to date.

Confirmed

What to watch

1. Future quarterly revenue and earnings will show whether Zillow can close the gap with analyst forecasts while sustaining growth from the prior year. Analyst inference
2. Further analyst estimate revisions could indicate whether the revenue shortfall and reported loss are changing expectations for Zillow’s future profit. Analyst inference
3. The article reports a $40 median 12-month analyst price target and a $30.98 last closing price; whether analysts update that target is a relevant next development. Confirmed

Evidence

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