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Zillow Surges Ahead Of Earnings; Estimates Still Not Encouraging

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Shares of Zillow Group Inc (NASDAQ: Z) were up more than 7 percent on Monday. The company’s first quarter financial results will be releasd after the market closes on Tuesday.

According to Estimize, experts and the crowd both anticipate a marked decline in earnings, to negative figures. Wall Street analysts are modeling a consensus net loss of $(0.10) per share on revenue of $141.64 million. Main Street is slightly less bearish, and projects a net loss of $(0.06) per share on revenue of $145.36 million.

These numbers compare to consensus-beating earnings of $0.02 per share (on revenue of $66.2 million) reported in the first quarter of 2014, and in-line earnings of $0.26 per share (on revenue of $92.33 million) posted in the last quarter.

Zillow has managed to either meet or beat Wall Street’s expectations for six consecutive quarters.

The second graph illustrates the evolution of consensus estimates over time.

Both the Street’s and the crowd’s expectations have been falling since the beginning of the year, having converged several times, before arriving at their current levels, with the Street being the most bearish.

Monday’s Upgrade

In a report rolled out Monday, analysts at SunTrust Robinson Humphrey upgraded shares of Zillow from Neutral to Buy, while boosting the price target from $110 to $130: “Zillow is poised for robust long-term growth following the completion of its merger with Trulia Inc and its dominant online and mobile position.”

Latest Ratings for Z

DateFirmActionFromTo
Jul 2016Morgan StanleyMaintainsOverweight
May 2016Cowen & Co.UpgradesUnderperformMarket Perform
May 2016BenchmarkMaintainsBuy

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View the Latest Analyst Ratings

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