Zillow tumbles after Q3 miss, weak guidance
ZG•Zillow shares fell 15.1% after third-quarter revenue of $724 million and adjusted earnings of 55 cents per share missed estimates. Its fourth-quarter revenue guidance of $635 million to $665 million was below the $711 million consensus.
1. Quarterly results miss estimates
Zillow reported third-quarter revenue up 7% year over year to $724 million, below the $754.2 million estimate. Adjusted earnings were 55 cents per share and adjusted EBITDA was $182 million, versus analyst estimates of 59 cents and $193.73 million.
2. Weak forecast and lower traffic
The company forecast fourth-quarter revenue of $635 million to $665 million and adjusted EBITDA of $100 million to $135 million, below consensus estimates of $711 million and $186 million, respectively. Average monthly unique users across its apps and sites fell 3% to 215 million, while visits declined 5% to 2.3 billion.
3. Analyst targets reduced
Piper Sandler cut its price target to $39 from $46; BofA lowered its target to $32 from $37, and Wells Fargo reduced its target to $30 from $31. Zillow also said last week it would pay $212.5 million to settle a class action over allegations it misled shareholders about its failed home-flipping venture.
