Zillow Q4 Revenue Tops Estimates at $654M, Shares Hit 52-Week Low on Legal Costs
Zillow Group’s Q4 revenue reached $654m, up 18% year-over-year, beating $650m estimates, while adjusted EPS of $0.39 missed consensus by $0.01. Management guided Q1 revenue to $700m–$710m versus $690m forecasts, but rising legal costs and new listing rivals pushed shares to a 52-week low.
1. Earnings Results
Zillow Group reported fourth-quarter revenue of $654m, up 18% year-over-year and above the $650m expected, while adjusted EPS of $0.39 trailed the $0.40 consensus by $0.01. Management set first-quarter revenue guidance at $700m–$710m, topping the roughly $690m forecast and indicating continued top-line momentum.
2. Legal Costs and Competitive Risks
Elevated legal expenses tied to disputes over private listing networks and a preliminary injunction in the Compass litigation are pressuring margins and valuation. At the same time, emerging competitors in the online listings space add uncertainty to Zillow’s market share and profitability outlook.
3. Price Action and Technical Signals
Shares slid more than 17% following the earnings release, trading near $44.54 at a new 52-week low. The RSI has fallen below 30, signaling an oversold condition and heightened selling pressure on the stock.