We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Zillow Group (ZG) in Q4 Earnings?
Read MoreHide Full Article
Zillow Group, Inc. (ZG - Free Report) is set to release fourth-quarter 2016 earnings on Feb 7. In the last quarter, the company reported a positive earnings surprise of 250.00%. We note that the company delivered negative earnings surprises in two of the last four quarters, with an average negative earnings surprise of 49.78%.
Shares of Zillow have outperformed the broader Zacks Internet Services industry over the last one year. While the industry gained 8.3%, the stock gained a decent 83.0%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Zillow provides real estate and home-related brands on the web and mobile. The company focuses on home lifecycle which includes renting, buying, selling, financing and home improvement.
In Nov 2016, Zillow introduced video walkthroughs to enable renters have a 360 degree view of the rental listings. This move is expected to positively impact the conversion rates and hence have a favorable impact on the company’s bottom line.
However, macroeconomic factors, a competitive landscape and increasing mortgage interest rates remain concerns for the company may weigh on its performance in the soon-to-be reported quarter.
For fourth-quarter 2016, management expects revenues in a range of $218 million to $233 million. Premier Agent revenues are projected in a range of $161 million to $163 million. Display revenues are anticipated to be in a range of $14 million to $15 million.
Earnings Whispers?
Our proven model does not conclusively show that Zillow is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Zillow’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 3 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Zillow carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
ACI Worldwide (ACIW - Free Report) with an Earnings ESP of +1.89% and a Zacks Rank #3.
Applied Materials (AMAT - Free Report) with an Earnings ESP of +6.06% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in the Cards for Zillow Group (ZG) in Q4 Earnings?
Zillow Group, Inc. (ZG - Free Report) is set to release fourth-quarter 2016 earnings on Feb 7. In the last quarter, the company reported a positive earnings surprise of 250.00%. We note that the company delivered negative earnings surprises in two of the last four quarters, with an average negative earnings surprise of 49.78%.
Shares of Zillow have outperformed the broader Zacks Internet Services industry over the last one year. While the industry gained 8.3%, the stock gained a decent 83.0%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Zillow provides real estate and home-related brands on the web and mobile. The company focuses on home lifecycle which includes renting, buying, selling, financing and home improvement.
In Nov 2016, Zillow introduced video walkthroughs to enable renters have a 360 degree view of the rental listings. This move is expected to positively impact the conversion rates and hence have a favorable impact on the company’s bottom line.
However, macroeconomic factors, a competitive landscape and increasing mortgage interest rates remain concerns for the company may weigh on its performance in the soon-to-be reported quarter.
For fourth-quarter 2016, management expects revenues in a range of $218 million to $233 million. Premier Agent revenues are projected in a range of $161 million to $163 million. Display revenues are anticipated to be in a range of $14 million to $15 million.
Earnings Whispers?
Our proven model does not conclusively show that Zillow is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Zillow’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of 3 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Zillow carries a Zacks Rank #3, which when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Zillow Group, Inc. Price and EPS Surprise
Zillow Group, Inc. Price and EPS Surprise | Zillow Group, Inc. Quote
Stocks to Consider
Here are some companies that, as per our model, that have the right combination of elements to post an earnings beat this quarter:
Applied Optoelectronics (AAOI - Free Report) with an Earnings ESP of +15.87% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACI Worldwide (ACIW - Free Report) with an Earnings ESP of +1.89% and a Zacks Rank #3.
Applied Materials (AMAT - Free Report) with an Earnings ESP of +6.06% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>