Market Overview

Zillow Group Earnings Preview

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On Thursday, November 05, Zillow Group (NASDAQ: ZG) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Zillow Group will report earnings of $0.11 per share on revenue of $572.22 million. Zillow Group EPS in the same period a year ago totaled $0.12. Revenue was $745.21 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 191.67%. Sales would be down 23.21% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.48 -0.34 -0.35 -0.20
EPS Actual -0.41 -0.25 -0.26 -0.12
Revenue Estimate 619.42 M 1.05 B 815.01 M 717.27 M
Revenue Actual 768.35 M 1.13 B 943.95 M 745.21 M

Stock Performance

For a full 12 months, the return has risen by 185.23%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Zillow Group is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: Earnings