Zillow’s Q3 Revenue Climbs 16.4% to $676M, Q4 Sales Seen at $650M

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Zillow reported Q3 revenues of $676 million, a 16.4% year-on-year increase that topped analysts' estimates by 0.8% and delivered an adjusted operating income beat. Analysts forecast Q4 revenue of $650.3 million (17.4% growth) and $0.40 adjusted EPS, while Zillow shares trade $54.17 with an $86.04 average target after an 18.8% one-month decline.

1. Q3 Financial Performance

Zillow reported Q3 revenue of $676 million, up 16.4% year-over-year, beating consensus estimates by 0.8%. Adjusted operating income and forward revenue guidance also exceeded analyst forecasts, underlining sustained top-line strength.

2. Q4 Analyst Projections

Analysts anticipate Q4 revenue of $650.3 million, representing 17.4% year-over-year growth, and adjusted EPS of $0.40 per share. These estimates align with the 16.9% revenue increase recorded in the same quarter last year.

3. Consistent Outperformance

Zillow has surpassed revenue estimates in every quarter over the past two years, averaging a 3.1% beat. This track record of consistent outperformance has bolstered investor confidence ahead of the upcoming earnings release.

4. Share Price Trajectory

Zillow shares have declined 18.8% over the past month due to broader consumer discretionary headwinds, trading around $54.17 versus an average analyst target of $86.04, indicating significant upside potential if forecasts are met.

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