Zillow Group (ZG) Q3 Earnings: Will It Pull Off A Surprise?
Zacks Investment Research | Oct 27, 2016 11:37PM ET
Zillow Group, Inc. (NASDAQ:ZG) is set to report third-quarter 2016 results on Nov 1. Last quarter, the company posted a negative earnings surprise of 443.7%. Let’s see how things are shaping up for this announcement.
Factors at Play
Zillow offers mobile and web solutions that enable users to find important information about homes. Zillow reported mixed second-quarter fiscal 2016 results. Although the company’s adjusted loss per share was wider than the Zacks Consensus Estimate, its revenues surpassed the same.
Zillow expects third-quarter revenue to be between $217 million and $222 million and full-year revenue to be between $830 million and $840 million. Our current revenue estimates for the fourth quarter and the full year stand at $221 million and $836 million, respectively.
We believe that strong traffic growth, frequent product launches and the growing Agent business are positives. In particular, product launches like Zillow Real Estate and Zillow Digs App for Apple Inc.'s (NASDAQ:AAPL) iPhone and iPad are expected to drive growth.
Moreover, the Trulia acquisition will not only make Zillow the number one online real estate information provider in the U.S., but also help it to compete against Move Inc., which has now been acquired by News Corp (NASDAQ:NWSA).
Zillow also entered into several partnerships with real estate listing companies and real estate brokers to enhance its product portfolio. However, the company is currently in the high investment phase and therefore profitability might be an issue in the to-be reported quarter.
ZILLOW GROUP Price and EPS Surprise
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