Zillow Quarterly Earnings Sneak Peek

Zillow Inc (NASDAQ:Z) will unveil its latest earnings on Monday, November 5, 2012.

Zillow Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of one cent per share, a decline of 80% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 71.4% compared to last year’s 12 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting profit of 4 cents per share against a mean estimate of net loss of one cent per share.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Wall St. Revenue Expectations: Analysts are projecting a rise of 66.3% in revenue from the year-earlier quarter to $31.7 million.

A Look Back: In the second quarter, profit fell 15.5% to $1.3 million (4 cents a share) from $1.6 million (0 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 75.2% to $27.8 million from $15.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.93 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 6.59 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 45% to $20.1 million while assets decreased 13.5% to $79 million.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose more than twofold in the first quarter before climbing again in the second quarter.

Stock Price Performance: Between September 4, 2012 and October 30, 2012, the stock price had fallen $4.24 (-10.2%), from $41.46 to $37.22. The stock price saw one of its best stretches over the last year between February 6, 2012 and February 16, 2012, when shares rose for nine straight days, increasing 7.6% (+$2.42) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 23.3% (-$6.86) over that span.

Analyst Ratings: There are mostly holds on the stock with three of five analysts surveyed giving that rating.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Are Allstate Shares a Sell in the Face of Hurricane Sandy?

Are New Tablets On Your Holiday Shopping List?

Will Consumers Have a Spooktacular Halloween?