Online real estate marketplace Zillow (NASDAQ: ZG) will be reporting results tomorrow afternoon. Here’s what to look for.
Zillow beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $554 million, up 16.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Zillow a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Zillow’s revenue to grow 11.4% year on year to $589.4 million, slowing from the 12.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 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 5.2% on average.
Looking at Zillow’s peers in the real estate services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cushman & Wakefield delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 2.5%, and Newmark reported revenues up 21.8%, topping estimates by 8.9%. Cushman & Wakefield traded up 4.2% following the results while Newmark was down 2.5%.
Read our full analysis of Cushman & Wakefield’s results here and Newmark’s results here.
There has been positive sentiment among investors in the real estate services segment, with share prices up 9.2% on average over the last month. Zillow is up 8.4% during the same time and is heading into earnings with an average analyst price target of $83.56 (compared to the current share price of $68.28).
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