Latest news with #ZG
Yahoo
5 days ago
- Business
- Yahoo
5 Insightful Analyst Questions From Zillow's Q2 Earnings Call
Zillow's second quarter performance saw revenue exceed Wall Street expectations, supported by robust growth in both its For Sale and Rentals businesses. Management credited the company's strategy of integrating digital tools—such as BuyAbility and AI-powered agent support—with cost discipline as key drivers of the quarter. CEO Jeremy Wacksman emphasized Zillow's continued market share gains, noting that 'we are gaining share in For Sale and Rentals, and we're doing it while maintaining cost discipline.' The Rentals segment, in particular, benefited from multifamily expansion and increased engagement with large property managers, while the For Sale category outpaced broader industry trends, aided by new product features and expanded market coverage. Is now the time to buy ZG? Find out in our full research report (it's free). Zillow (ZG) Q2 CY2025 Highlights: Revenue: $655 million vs analyst estimates of $647.2 million (14.5% year-on-year growth, 1.2% beat) Adjusted EPS: $0.40 vs analyst expectations of $0.41 (3.2% miss) Adjusted EBITDA: $155 million vs analyst estimates of $152.4 million (23.7% margin, 1.7% beat) Revenue Guidance for Q3 CY2025 is $668 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q3 CY2025 is $155 million at the midpoint, below analyst estimates of $160.1 million Operating Margin: -1.7%, up from -6.6% in the same quarter last year Market Capitalization: $19.25 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions From Zillow's Q2 Earnings Call Ron Josey (Citi) asked about the factors driving Rentals acceleration and confidence in full-year growth. CEO Jeremy Wacksman emphasized expanding inventory, strong advertiser ROI, and new partnerships as key contributors. Brad Erickson (RBC) questioned the impact of the Redfin partnership on Rentals revenue. CFO Jeremy Hofmann explained that expanded distribution increases value for property managers and broadens the addressable market. Ryan McKeveny (Zelman & Associates) asked about the monetization of Zillow Showcase and whether direct consumer demand factors into revenue targets. Wacksman clarified that both agent- and seller-driven adoption contribute to overall growth. John Colantuoni (Jefferies) inquired about variable expense growth and milestones for aligning costs with revenue. Hofmann stated investments are concentrated in Rentals and Home Loans, with plans to moderate as initiatives scale. Andrew Boone (Citizens Bank) sought insight on AI's role in automation and agent productivity. Wacksman described how AI-powered tools are already streamlining workflows and enhancing client engagement, with further efficiencies anticipated. Catalysts in Upcoming Quarters In the coming quarters, StockStory analysts are monitoring (1) the pace of Rentals revenue growth and multifamily property additions, (2) expansion of Enhanced Markets and the rollout of associated technology tools, and (3) the impact of AI-driven solutions on agent adoption and consumer engagement. Progress on partnerships and continued cost discipline will also be key indicators of execution. Zillow currently trades at $76.98, down from $81.51 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Our Favorite Stocks Right Now Trump's April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
Zillow Misses Q2 Earnings Estimates Despite Higher Revenues
Zillow Group, Inc. ZG reported mixed second-quarter 2025 results, wherein the bottom line missed the Zacks Consensus Estimate but the top line beat the same. The company registered a healthy improvement in revenues with deep customer connect and a solid brand position in the residential real estate industry, boasting 243 million average monthly unique users across the Zillow ecosystem of apps and sites. Its advanced technology, such as Zillow Showcase, featuring various AI features, Real Time Touring and New Construction marketplace, is gaining huge popularity. Net Income In the reported quarter, net income (on a GAAP basis) was $2 million or 1 cent per share against a net loss of $17 million or a loss of 7 cents per share in the prior-year quarter. Solid top-line growth primarily boosted the net income. On a non-GAAP basis, net income was 40 cents per share, which missed the Zacks Consensus Estimate by 4 cents. Zillow Group, Inc. Price, Consensus and EPS Surprise Zillow Group, Inc. price-consensus-eps-surprise-chart | Zillow Group, Inc. Quote Revenues Quarterly revenues increased to $655 million from $572 million in the year-ago quarter. Healthy growth in the residential and rental segment boosted the top line. The top line beat the Zacks Consensus Estimate of $647 revenues increased 6% to $434 million, backed by solid growth in its agent and software offerings, which include Premier Agent and Zillow Showcase and ShowingTime, DotLoop and Follow Up Boss, Mortgages segment generated $48 million in revenues compared with $34 million in the year-earlier quarter. The growth was primarily driven by a 48% surge in purchase loan Revenues rose 36% to $159 million, primarily driven by 56% year-over-year growth of multifamily revenues. Other Details During the quarter, Zillow recorded a gross profit of $489 million compared with $442 million in the prior-year quarter, owing to healthy revenue growth in all segments. The operating expenses during the quarter were $500 million, up from $480 million in the prior-year EBITDA was $155 million compared with $134 million a year ago, backed by higher revenues and cost discipline. Cash Flow & Liquidity In the first six months of 2025, Zillow generated $191 million in cash from operating activities compared with $135 million in the prior-year period. As of June 30, 2025, the company had $587 million in cash and cash equivalents, with $38 million in other long-term liabilities. Outlook For the third quarter of 2025, Zillow expects total revenues in the range of $663-$673 million. Total adjusted EBITDA is expected in the band of $150 million to $160 million. Management expects Mortgages' revenues to grow approximately 20% year over year. Residential revenues are projected to grow mid-single digits, while rental revenues are expected to rise more than 40% year over company expects low to mid-teens revenue growth for 2025, with continued adjusted EBITDA margin expansion. GAAP net income is also forecasted to be positive. Zacks Rank Zillow currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Upcoming Releases Keysight Technologies, Inc. KEYS is scheduled to release third-quarter 2025 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, suggesting a growth of 6.4% from the year-ago reported has a long-term earnings growth expectation of 12%. Keysight delivered an average earnings surprise of 8.2% in the last four reported Technologies, Inc. AKAM is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported Inc. PINS is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report Zillow Group, Inc. (ZG) : Free Stock Analysis Report Pinterest, Inc. (PINS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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
