Zillow earnings: what to look for from ZG

What happened

Zillow reports earnings Wednesday after the market closes. Last quarter revenue was $772 million, up 17.9% year on year, beating analyst revenue and earnings-per-share estimates. This quarter analysts expect revenue growth of 11.4%, slower than the 16.4% recorded a year earlier.

Confirmed

Global impact / market context

Slower expected revenue growth means Zillow's sales are still rising but at a weaker pace, so investors will compare the actual figure with the 11.4% estimate. Peer results were mixed: JLL revenue rose 11.8% and its stock gained 17.9%, while Newmark rose 12.7% but fell 4.5%.

Analyst inference

Analysts reconfirmed estimates in the last 30 days, suggesting they expect steady results, and Zillow has a history of exceeding Wall Street expectations. Real estate services peers already reported mixed revenue beats, so the stock reaction may depend on whether Zillow clears its growth estimate and how guidance compares.

Analyst inference

What to watch

1. Watch whether reported revenue growth reaches the 11.4% year-on-year expectation, compared with 16.4% in the same quarter last year. Zillow previously beat both revenue and earnings-per-share estimates. Confirmed
2. Watch whether Zillow repeats its pattern of exceeding Wall Street estimates, since analysts reconfirmed forecasts in the last 30 days and the company has a history of beating expectations. Analyst inference
3. Watch the stock reaction against peers: JLL rose 17.9% after its 11.8% revenue growth, while Newmark fell 4.5% despite 12.7% growth, showing results alone did not set direction. Analyst inference

Evidence

• stockstory.org