Zillow Q4 Revenue Tops Estimates, EPS Miss Sparks 19.6% Weekly Drop
Zillow Group reported Q4 revenue of $654 million, topping analyst forecasts, while adjusted EPS of $0.39 missed estimates by $0.01. Shares plunged to a 52-week low, closing down about 19.6% for the week as management guided Q1 revenue at $700–710 million.
1. Mixed Q4 Results
Zillow posted fourth-quarter revenue of $654 million, surpassing consensus estimates, but adjusted earnings of $0.39 per share fell short by $0.01, missing analyst forecasts and raising concerns about margin pressures.
2. Q1 Revenue Guidance
Management projected first-quarter revenue between $700 million and $710 million, above the roughly $690 million consensus, signaling continued top-line momentum despite tightening profitability constraints.
3. Legal and Competitive Pressures
Rising legal expenses related to disputes with rival brokerages, coupled with competition from private listing networks, have analysts trimming long-term earnings forecasts and placing downward pressure on valuation.
4. Technical Outlook
Shares traded near their 52-week low of around $43, with the RSI registering in oversold territory at 16.12 and MACD below its signal line, suggesting bearish momentum but potential for a technical rebound.