Zillow Stock Surges on Upbeat Earnings Report

Shares of Zillow Group, Inc. soared on Thursday’s post-trading after it released an upbeat fourth-quarter earnings report.

The online real estate marketplace saw a hike of 15.59% or 7.46 points to $55.32 per share.

It significantly elevated from its loss of 1.26% or 0.61 points to $47.86 per share in the regular hours market.

Correspondingly, it now stands with a market capitalization of $12.35 billion, with shares outstanding of 254.803 million.

Zillow surpassed the market estimates on all of the three reportable segments.

Accordingly, its consolidated Q4 revenue posted an annual increase of 392.00% to $3.88 billion. The figure also came higher than the average consensus of $2.98 billion.

The full-year 2021 increased 144.00% to $8.15 billion from the same period of the prior year.

Subsequently, the internet, media, and technology (IMT) segment generated $483.20 million in the three months ended in December. It narrowly topped the expected $481.90 million.

At the same time, Zillow sold 8,353 homes in the reported period, outpacing its outlook of 5,000 sales.

In line with this, it ended the quarter with about 10,000 homes in inventory.

Eventually, the business came out with a quarterly loss of $0.42 per share, lower than the $1.24 market average estimate.

In line with this, the latest quarterly report represented an earnings surprise of 66.13%.

Still, Zillow has underperformed the market this year, trading 22.72% or 14.07 points lower year-to-date.

Zillow Posts Upbeat Outlook

For the first quarter, Zillow forecasted its total revenue to post within a range of $3.12 billion to $3.44 billion. The positive guidance beat the analyst projection of $3.26 billion.

The firm currently focuses on the marketplace, linking buyers and sellers with tools and technology to simplify the process.

The effort includes working with a vast network of agents and guiding consumers with their mortgages.

Accordingly, Zillow anticipates this move to translate $5.00 billion in revenue by 2025 and a 45.00% adjusted profit margin.

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