2 Tech Earnings Calls To Watch Tuesday: Zillow And Activision Blizzard

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  • Zillow Group, Inc.-Class C Z and Activision Blizzard, Inc. ATVI are scheduled to announce their third-quarter financial results after the market closes Tuesday.
  • According to Estimize, both companies are expected to deliver year-over-year decreases in earnings.
  • Despite the low expectations, shares of Zillow were up more than 3.3 percent on Monday trading. Meanwhile, shares of Activision fell slightly.
  • Zillow

    While expectations for Zillow are quite low, investors should notice from the chart below that the company has tended to widely beat consensus estimates over the past couple of years.

    It should also be noted that online real estate company’s earnings are quite cyclical and tend peak in the fourth quarter each year.

    For the third quarter of 2015, the Street is modeling a consensus net loss of ($0.06) per share on revenue of $176.25 million, while the crowd is projecting a net loss of ($0.02) per share on revenue of $177.25 million. These estimates imply a marked decline from last year’s EPS of $0.13 on revenue of $88.6 million.

    Related Link: Buy Zillow After Class C Issuance: Stephens' John Campbell

    Activision Blizzard

    Activision’s earnings are also cyclical and peak in the fourth quarter each year. However, unlike Zillow’s case, its results have tended to only slightly beat estimates.

    In the third quarter of 2014, the big-cap video game maker reported earnings of $0.23 per share on revenue of $1.17 billion, up 188 percent and 78 percent year-over-year, respectively.

    For the current quarter, however, expectations point toward lower earnings and sales. Management guided for earnings of $0.14 per share on revenue of $930 million; meanwhile, the Street is anticipating EPS of $0.16 on revenue of $946.67 million.

    The least bearish is the crowd, which envisions consensus earnings of $0.18 per share on sales of $964.19 million.

    Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

    Image Credit: Public Domain
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