Latest news with #ZG
Yahoo
08-05-2025
- Business
- Yahoo
Zillow's (NASDAQ:ZG) Q1: Beats On Revenue But Stock Drops
Online real estate marketplace Zillow (NASDAQ:ZG) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 13% year on year to $598 million. Its GAAP profit of $0.03 per share was significantly above analysts' consensus estimates. Is now the time to buy Zillow? Find out in our full research report. Zillow (ZG) Q1 CY2025 Highlights: Revenue: $598 million vs analyst estimates of $589.9 million (13% year-on-year growth, 1.4% beat) EPS (GAAP): $0.03 vs analyst estimates of -$0.02 (significant beat) Adjusted EBITDA: $153 million vs analyst estimates of $138.5 million (25.6% margin, 10.5% beat) Operating Margin: -1.5%, up from -8.5% in the same quarter last year Free Cash Flow Margin: 11.4%, up from 7.8% in the same quarter last year Market Capitalization: $16.15 billion Company Overview Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Sales Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Zillow's demand was weak and its revenue declined by 7.6% per year. This was below our standards and suggests it's a lower quality business. Zillow Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Zillow's annualized revenue growth of 10.4% over the last two years is above its five-year trend, but we were still disappointed by the results. Zillow Year-On-Year Revenue Growth This quarter, Zillow reported year-on-year revenue growth of 13%, and its $598 million of revenue exceeded Wall Street's estimates by 1.4%. Looking ahead, sell-side analysts expect revenue to grow 14.4% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and suggests its newer products and services will spur better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Zillow's operating margin has been trending up over the last 12 months, but it still averaged negative 10% over the last two years. This is due to its large expense base and inefficient cost structure.
Washington Post
07-05-2025
- Business
- Washington Post
Zillow: Q1 Earnings Snapshot
SEATTLE — SEATTLE — Zillow Group Inc. (ZG) on Wednesday reported first-quarter net income of $8 million. The Seattle-based company said it had profit of 3 cents per share. Earnings, adjusted for stock option expense, came to 41 cents per share.
Yahoo
02-05-2025
- Business
- Yahoo
3 Unprofitable Stocks in the Doghouse
Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here are three unprofitable companiesto avoid and some better opportunities instead. Trailing 12-Month GAAP Operating Margin: -8.8% Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace. Why Are We Hesitant About ZG? Products and services have few die-hard fans as sales have declined by 4% annually over the last five years Persistent operating losses suggest the business manages its expenses poorly Negative returns on capital show that some of its growth strategies have backfired At $65.75 per share, Zillow trades at 34.2x forward P/E. Dive into our free research report to see why there are better opportunities than ZG. Trailing 12-Month GAAP Operating Margin: -14.1% Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls. Why Does SG Fall Short? Historical operating losses point to an inefficient cost structure Negative free cash flow raises questions about the return timeline for its investments Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Sweetgreen is trading at $19.41 per share, or 65.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SG doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: -2.3% Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats. Why Does MCFT Give Us Pause? Performance surrounding its boats sold has lagged its peers Estimated sales growth of 6.2% for the next 12 months is soft and implies weaker demand Sales were less profitable over the last five years as its earnings per share fell by 26.6% annually, worse than its revenue declines MasterCraft's stock price of $16.81 implies a valuation ratio of 14.4x forward P/E. To fully understand why you should be careful with MCFT, check out our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
