Zillow earnings rebounded to positive territory from the year-ago quarter’s loss.
In the second quarter, the online real estate service company’s earnings came in at 4 cents a share, compared to a loss of -38 cents a share in the year-ago period. After adjusting for stock-based compensation and other costs, the earnings were 44 cents a share, vs. an adjusted loss of -17 cents a share in the year-ago quarter. Analysts polled by FactSet expected adjusted earnings of 24 cents a share.
Revenue surged +70% year-over-year to $1.31 billion in the quarter, surpassing analysts’ estimate of $1.28 billion. Zillow’s revenue from the Internet, Media & Technology segment came in at $476.1 million (vs. $280 million a year ago, and compared to analysts’ expected $467 million); revenue from for its core Premier Agent offering for professionals was $348.8 million (vs. $192 million a year-ago, and compared to analysts’ expected $345 million).
The company’s revenue from its Homes segment was $777.1 million (vs. $454.3 million in the same quarter last year, and $751 million expected by analysts polled by Factset). The Mortgages segment had sales of $56.7 million (vs. $33.8 million, and $62 million expected by analysts).
For the third quarter, Zillow has projected revenue in the range of $1.93 billion to $2.05 billion, well above analysts' estimate of $1.45 billion (based on FactSet poll). The biggest contributor to the difference between analysts’ estimates and Zillow’s forecast was expected growth in Zillow Offers: Zillow’s forecast for the Home business far exceeded analysts’ $900 million expectation for the segment.
The Stochastic Oscillator for ZG moved out of overbought territory on May 11, 2023. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 57 similar instances where the indicator exited the overbought zone. In of the 57 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ZG as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ZG turned negative on May 16, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 40 similar instances when the indicator turned negative. In of the 40 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ZG broke above its upper Bollinger Band on May 05, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ZG's RSI Indicator exited the oversold zone, of 35 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
ZG moved above its 50-day moving average on May 04, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZG advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 249 cases where ZG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ZG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.283) is normal, around the industry mean (21.615). ZG has a moderately high P/E Ratio (128.205) as compared to the industry average of (41.233). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.151). Dividend Yield (0.000) settles around the average of (0.023) among similar stocks. P/S Ratio (5.565) is also within normal values, averaging (10.045).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows