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5 Key Points Zillow Investors Should Know Post-Merger

5 Key Points Zillow Investors Should Know Post-Merger

In a report published Monday, SunTrust Robinson Humphrey analyst Bob Peck presented five key points Zillow Group Inc (NASDAQ: Z) needs to understand as its first quarter ends post-merger with Trulia.

1. For the first quarter, Peck estimated the company to report revenue of $172 million and an EBITDA of $27 million. For the full fiscal year 2015, Peck estimated the company will report revenue of $767 million and an EBITDA of $141 million. For the full year fiscal 2016, revenue was estimated at $1 billion and an EBITDA of $250 million.

2. Peck noted that he is expecting pro-forma financials on or before the first quarter print, a "stub quarter" (acquisition closed on February 17) and a "resetting of the bar" in addition to potential details on cost impacts for the year.

3. Zillow and Trulia executed its products in different ways and throughout 2015 there may be several transitions or decisions to create a unified platform that is more effective for the company's agents.

4. The ListHub agreement is set to expire on April 7 and Zillow has progressed rapidly in locking up MLSs and broker direct deals. Most recently, Zillow's Chief Industry Development Officer Errol Samuelson stated that the company will have more listings on April 7 than under the prior ListHub arrangement.

5. At the recent Realogy analyst day, the firm showed statistics that indicate online leads converted at approximately 1 percent. Peck argued that "this is only part of the story" and that the overall rate is 2.5 percent for Realogy and around three percent for contacted agents.

Shares of Zillow remain Neutral rated with an unchanged $115 price target.

Latest Ratings for Z

Aug 2019MaintainsEqual-Weight
Aug 2019MaintainsOverweight
Jul 2019Initiates Coverage OnOverweight

View More Analyst Ratings for Z
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Posted-In: Bob Peck Errol Samuelson ListHub MLS Realogy SunTrust Robinson HumphreyAnalyst Color Analyst Ratings Best of Benzinga


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