Zillow (Z) Lags Q4 Earnings Estimates

Company Performance - Zillow reported quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.29 per share, but showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of -6.90% [1] - The company posted revenues of $554 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.41%, compared to year-ago revenues of $474 million [2] - Over the last four quarters, Zillow has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Zillow shares have increased approximately 18.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $605.44 million, and for the current fiscal year, it is $2.15 on revenues of $2.58 billion [7] Industry Outlook - The Real Estate - Operations industry, to which Zillow belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Zillow's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]