Zillow (Z) Q1 Earnings Lag Estimates

Core Insights - Zillow reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of$0.43 per share, but showing an increase from $0.36 per share a year ago, resulting in an earnings surprise of -4.65$598 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.61% and up from $529 million year-over-year [2] - Zillow shares have declined approximately 9.3$0.58 on revenues of $657.3 million, and for the current fiscal year, it is$1.90 on revenues of $2.57 billion [7] - The estimate revisions trend for Zillow is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Services industry, to which Zillow belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]