The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Zillow beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.
Gross margins grew, operating margins shrank, net margins dropped.
Zillow tallied revenue of $34.3 million. The nine analysts polled by S&P Capital IQ expected to see net sales of $31.3 million on the same basis. GAAP reported sales were 73% higher than the prior-year quarter's $19.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.00 per share. GAAP EPS were $0.02 for Q4 versus -$0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.9%, 380 basis points better than the prior-year quarter. Operating margin was 1.5%, 450 basis points worse than the prior-year quarter. Net margin was 1.6%, 300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $34.1 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $160.6 million. The average EPS estimate is $0.52.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 289 members out of 455 rating the stock outperform, and 166 members rating it underperform. Among 177 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Zillow a green thumbs-up, and 86 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zillow is outperform, with an average price target of $38.63.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Zillow. The Motley Fool owns shares of Zillow. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.