Photo Credit: Chris Chabot

Zillow Group, Inc (ZG) Information Technology – Internet, Software & Services | Reports November 1,  After Market Closes

Key Takeaways

Zillow Group is scheduled to report second quarter earnings today after the market closes. The online real estate database is coming off a mixed second quarter in which earnings topped expectations by a wide margin while revenue was right in line with analysts’ forecasts. This is a sharp turnaround from previous quarters that recorded triple digit earnings declines with sales growth over 50%. The upcoming quarter’s results are looking to tack onto Q2 success and spruce up the top line.

Analysts at Estimize are calling for earnings per share of 14 cents, 245% higher than the same period last year. That estimate has ticked up considerably in the past 3 months after the company raised its full year guidance. Revenue is expected to jump 25% in the quarter to $221.14 million, reflecting a slight step up from the second quarter. That said, the stock has been hammered since Zillow’s last report with shares down 17% in the past 3 months. Historically the stock tends to jump about 3% in the 30 days following an earnings report. 

The biggest initiatives coming out of the Zillow camp have been expanding its mobile presence. Mobile is not only one of the fastest growing segment but it also creates a new layer of potential revenue. The app now enables users to more easily find important information about prospective homes. These efforts, plus frequent product launches, are driving strong traffic growth and user engagement. Zillow recently launched Zillow Diggs which provides new and potential homeowners a hub for all design and improvement ideas.