Online real estate marketplace Zillow (NASDAQ:ZG) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Zillow beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $598 million, up 13% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.
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 13.1% year on year to $647.2 million, in line with the 13% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 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 4.1% 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. CBRE delivered year-on-year revenue growth of 16.2%, beating analysts’ expectations by 4.3%, and Newmark reported revenues up 19.9%, topping estimates by 10.7%. CBRE traded up 7.3% following the results while Newmark was also up 4.7%.
Read our full analysis of CBRE’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 2.5% on average over the last month. Zillow is up 14.9% during the same time and is heading into earnings with an average analyst price target of $81.38 (compared to the current share price of $80.89).
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