Zillow Group Inc (NASDAQ: ZG) stock opened nearly 20% down this morning on disappointing guidance for the current fiscal quarter. Its Q1 revenue, however, came in better-than-expected.
Zillow Q1 earnings snapshot
Earned $16 million in the first quarter that translates to 6 cents a share.Adjusted per-share earnings of 49 cents were ahead of last year’s 44 cents.Revenue soared 250% to $4.26 billion, as per the earnings press release.FactSet consensus was for 24 cents of adjusted EPS on $3.36 billion in sales.Sold 8,981 homes in fiscal Q1 and bought only 231 in the three-month period.Still holding 1,300 houses, with agreed-upon deals on more than 90% of these.
IMT brought in $490 million in the first quarter (10% growth that matched analysts’ estimates) while revenue from mortgages came in at $46 million (32% decline that was worse than analysts’ estimates). The stock is now down nearly 50% for the year.
Outlook for the current fiscal quarter
For the fiscal second quarter, Zillow expects its revenue to fall in the range of $903 million to $1.03 billion, significantly below the experts’ forecast of $1.83 billion.
IMT revenue is expected to hit $492 million in Q2 at the top end of the range and mortgages is seen bringing in $31 million to $39 million – both well below consensus. In the letter to shareholders, the Seattle-based company said:
For the 2022 housing market, the path ahead is uncertain. Inventory levels remain low, new for-sale listings remain down YoY, and our average page views per listing were at record highs in Q1, demonstrating the ongoing supply-demand imbalance.
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