Zillow
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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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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