Zillow Earnings: These Numbers Disappointed Investors
Zillow Inc. (NASDAQ:Z) climbed to a profit in the most recent quarter, beating Wall Street’s profit estimate, but lowered its revenue estimate. Zillow now expects fourth-quarter revenue of $30 million to $31 million. Analysts were looking for revenue of $32.5 million. Zillow, Inc. is a real estate information marketplace. The Company provides information about homes, real estate listings and mortgages through their website and mobile applications. Zillow enables homeowners, buyers, sellers, and renters to connect with real estate and mortgage professionals.
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Zillow Earnings Cheat Sheet for the Third Quarter
Results: Reported a profit of $2.3 million (7 cents per diluted share) in the quarter. Zillow Inc. had a net loss of $570,000 or a loss 2 cents per share in the year-earlier quarter.
Revenue: Rose 67.5% to $31.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Zillow Inc. beat the mean analyst estimate of one cent per share.
Quoting Management: “Zillow had another great quarter with record usage across mobile and Web. In fact, we reached a major milestone recently, topping one billion home views on Zillow Mobile through the first three quarters of 2012,” said Spencer Rascoff, chief executive officer of Zillow. “During the quarter we also expanded our suite of technology tools and services for professionals. Last week we announced the acquisition of Buyfolio, a collaborative shopping tool that can increase the conversion rates for agents, and further add value to our successful Premier Agent program. We’ve made another important leap today with the announcement of our planned acquisition of Mortech, which will further extend the services we provide to the mortgage industry.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the second quarter, by 6 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.
The average estimate for the fiscal year is 12 cents per share, a rise from 7 cents ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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