Zillow Group Inc. (NASDAQ: ZG) saw a decline in its shares during after-hours trading following the release of its second-quarter financial results. While the real estate site exceeded Wall Street expectations for the quarter, its outlook fell short.
Financial Performance
Zillow reported a second-quarter loss of $35 million, or 15 cents per share, compared to a net income of $8 million, or 3 cents per share, in the same period last year. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 39 cents per share, down from 47 cents per share in the year-ago period.
Revenue Growth
Despite the decrease in earnings, revenue showed growth, rising to $506 million from $504 million in the second quarter of the previous year. This exceeded analysts’ expectations, as surveyed by FactSet, who had forecasted Zillow earnings of 19 cents per share on revenue of $472.6 million.
Outlook
However, Zillow’s third-quarter forecast didn’t meet analysts’ estimates. The company expects revenue to range from $458 million to $486 million for the upcoming quarter. Analysts had projected earnings of 26 cents per share on revenue of $488.1 million.
Zillow Group Inc.’s stock declined as much as 3% in after-hours trading, following a 2% decline during regular trading hours, ending at $54.23.
In conclusion, while Zillow Group Inc. delivered strong revenue growth and exceeded expectations for the second quarter, its outlook fell short of analysts’ estimates for the upcoming quarter.
