Stock Story -
Online real estate marketplace Zillow (NASDAQ:Z) (NASDAQ:ZG) will be reporting earnings tomorrow after market close. Here's what to expect.
Zillow beat analysts' revenue expectations by 4.1% last quarter, reporting revenues of $529 million, up 12.8% year on year. It was a weaker quarter for the company, with a miss of analysts' earnings and monthly active users estimates.
Is Zillow a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Zillow's revenue to grow 6.4% year on year to $538.2 million, a reversal from the 49.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zillow has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.3% on average.
Looking at Zillow's peers in the real estate services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Newmark delivered year-on-year revenue growth of 8.1%, meeting analysts' expectations, and Compass reported revenues up 13.8%, topping estimates by 3.3%. Newmark traded down 9.5% following the results while Compass was also down 3.4%.
Read the full analysis of Newmark's and Compass's results on StockStory.
Investors in the real estate services segment have had steady hands going into earnings, with share prices flat over the last month. Zillow is down 6.3% during the same time and is heading into earnings with an average analyst price target of $53.3 (compared to the current share price of $42.47).
