Online real estate marketplace Zillow (NASDAQ: ZG) will be announcing earnings results this Thursday afternoon. Here’s what you need to know.
Zillow beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $655 million, up 14.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Is Zillow a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Zillow’s revenue to grow 15.4% year on year to $670.5 million, slowing from the 17.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally 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 3.4% on average.
Looking at Zillow’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CBRE delivered year-on-year revenue growth of 13.5%, beating analysts’ expectations by 2.1%, and Nike reported revenues up 1.1%, topping estimates by 6.5%. CBRE’s stock price was unchanged after the resultswhile Nike was up 6.5%.
Read our full analysis of CBRE’s results here and Nike’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Zillow is down 7.1% during the same time and is heading into earnings with an average analyst price target of $89.20 (compared to the current share price of $72.44).
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