Zillow Shares Plunge Nearly 20% After Q4 EPS Miss Despite Revenue Beat
Zillow reported Q4 revenue of $654 million, slightly above consensus, while adjusted EPS of $0.39 fell one cent short of estimates. The company guided Q1 revenue to $700–710 million, but escalating legal expenses and fresh private-listing competition have driven shares to a 19.6% weekly decline and a 52-week low.
1. Earnings Results
Zillow posted fourth-quarter revenue of $654 million, marginally above street forecasts, but adjusted earnings per share of $0.39 missed estimates by one cent. The mixed results triggered a sharp decline in shares, pushing them to a 52-week low.
2. First-Quarter Guidance
Management projected first-quarter revenue between $700 million and $710 million, exceeding near-$690 million analyst forecasts and signaling continued top-line growth. Despite the upbeat guidance, investor focus remains on profitability and margin pressures.
3. Valuation Pressure
Escalating legal expenses from disputes with brokerage rivals and competition from private listing networks are weighing on sentiment, prompting analysts to trim longer-term earnings forecasts. Rising costs and market uncertainty have capped the stock’s valuation.
4. Technical Indicators
The stock has fallen 19.6% over the past week, with the RSI at 16.12 indicating oversold conditions and the MACD remaining below its signal line. Key support and resistance levels sit at $43.00 and $45.00, respectively.