Zillow (ZG) down 1.4% post-earnings report despite strong Q1 revenue increase

From Nasdaq: 2024-05-31 11:31:33

Zillow Group (ZG) has seen a 1.4% drop in shares since the last earnings report. Despite outperforming the S&P 500, analysts are uncertain if the negative trend will continue. Zillow’s Q1 earnings met estimates, with a revenue increase and net losses slightly up. Outlook for Q2 2024 projects strong residential revenue growth.

Zillow experienced a revenue surge in Q1 2024, with top-line results beating estimates and net income improving to $93 million. Residential revenues grew by 9%, while rental segment revenues saw a 31% rise. Zillow’s Q1 performance was driven by strong momentum in all business verticals and notable advances in technology.

Cash flow and liquidity for Zillow in Q1 2024 showed a decline in cash from operating activities compared to the previous year. The company ended the quarter with $1.44 billion in cash and cash equivalents. For Q2 2024, Zillow anticipates total revenues to be between $525-$540 million, with a promising outlook for residential revenues and adjusted EBITDA.

Zillow has a Zacks Rank #3 (Hold), with stagnant analyst revisions in the past two months. In comparison, Alphabet from the same industry reported an upward trend, with stock gains and a strong forecast for the current quarter. Experts highlight 7 elite stock picks, including Zillow and Alphabet, for early price pops and market outperformance.



Read more at Nasdaq: Why Is Zillow (ZG) Down 1.4% Since Last Earnings Report?