Zillow Group, Inc. (NASDAQ: ZG)
Shares of Zillow are falling after the US real estate company announced mixed financial results for the three months ended June 30, 2018.
The company fell short of analyst revenue expectations, causing its stock to lose $10.02, or 16.98% in pre-market trading on Tuesday Zillow also lowered its third-quarter and full-year revenue outlook, further upsetting investors.
Separately, the company said it is buying Mortgage Lenders of America for an undisclosed price.
The Washington-based company hopes to make more money from the acquisition by partnering with real estate brokers who have existing mortgage affiliates and in-house mortgage operations.
Investing activity that frequently accompanies deals in which a company acquires another, is also likely to have sent the stock on a fall.
ZG Earnings & Outlook
Zillow revealed a net loss of $3.1 million, or $0.02 per share, compared with a net loss of $21.8 million, or $0.12 per share, in the second quarter of the previous year.
After stripping out amortization expenses and special items, the company earned $0.13 per share compared with $0.04 per share in the second quarter of the previous year. Total sales jumped from $266.9 million in the same quarter last year, to $325.3 million.
Analysts had expected earnings of $0.10 per share on revenue of $326 million, according to figures compiled by Thomson Reuters data. For the third-quarter, the company sees sales of between $337 million and $347 million, below estimates of $412 million.
Zillow sees full-year sales of between $1.32 billion and $1.35 billion, also below expectations of $1.49 billion.
Zillow Group CEO Comments
“Zillow Group’s second quarter 2018 year-over-year revenue growth of 22% was driven primarily by our Premier Agent, Rentals and New Construction marketplaces. This quarter also marked a major milestone in Zillow Group’s history, as we launched our Homes business and began buying houses directly from homeowners in two cities through Zillow Offers™,” said Zillow Group Chief Executive Officer, Spencer Rascoff.
“At this exciting time in the real estate industry, Zillow Group is committed to developing innovative technology and services, like Zillow Offers and, with today’s announcement, potential for mortgage originations, that help our partners meet evolving consumer expectations, while generating more revenue opportunities,” continued Rascoff.
Zillow Group, Inc. Company Profile
Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States.
The company offers a portfolio of brands and products to enable consumers find information about homes and connect with local professionals.
Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company’s portfolio of consumer brands comprises real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and OutEast.com.
It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed.
In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington. –YahooFinance