Zillow Revenue Jumps 18% to $654M but Q4 EPS Misses by 1 Cent, Stock Drops 19%
Zillow Group's Q4 revenue rose 18% to $654M but adjusted EPS of $0.39 missed the $0.40 consensus. Shares plunged nearly 19% Wednesday, dragging housing names like Rocket Companies down as analysts cut forecasts and weighed on sector sentiment.
1. Q4 Financial Results
Zillow Group reported fourth-quarter revenue of $654 million, up 18% year-over-year, but adjusted earnings per share came in at $0.39, trailing the $0.40 consensus. The results highlight robust top-line growth alongside a modest profit‐margin squeeze.
2. Stock and Sector Reaction
Zillow shares tumbled nearly 19% in a single session, sparking declines across housing-sensitive stocks. Mortgage originators such as Rocket Companies slid over 8% as investors reassessed listing traffic and advertising revenue forecasts.
3. Analyst Forecast Cuts
Following the earnings release, equity analysts trimmed full-year revenue and EPS projections for Zillow. Average price targets were reduced by roughly 5%, with revisions reflecting the EPS shortfall and lingering housing market uncertainty.
4. Q1 Sales Guidance
The company issued first-quarter revenue guidance of $700 million to $710 million, indicating continued year-over-year growth. Management cited interest-rate trends as a primary factor affecting transaction volumes and advertising demand.