Zillow Group (Z,ZG) Stock Nosedives on Weak Q2 Guidance, Acquisition

Zillow Group (NASDAQ:Z,NASDAQ:ZG) had a disappointing start to the week as the company reported its latest quarterly earnings results and guidance, which missed expectations.

Zillow Group (Z,ZG)The online real estate database said that for its second quarter of fiscal 2018, it brought in net losses of $3.1 million, or 2 cents per share. The figure was much narrower than the company’s losses of $21.8 million, or 12 cents per share from the year-ago quarter.

Zillow added that it brought in earnings of 13 cents per share on an adjusted basis, a 225% gain compared to the 4 cents per share it amassed during the year-ago quarter. The Wall Street consensus estimate called for adjusted earnings of 9 cents per share, according to data compiled by FactSet.

Revenue was underwhelming for the online real estate database at $325.3 million, below the $326 million in sales that analysts were calling for, according to data compiled by FactSet. However, Zillow’s revenue was better than its-year ago sales of $266.9 million by 21.9%.

For its third quarter of fiscal 2018, the company is calling for revenue in the range of $337 million to $347 million. Wall Street projects sales of $408 million.

Zillow also announced the acquisition of Mortgage Lenders of America on Monday.

Z stock was down about 15.8%, while ZG stock declined 16.4% after the bell on Monday following the company’s dismal third-quarter revenue outlook. Z shares gained 1% and ZG stock surged 1.3% during regular trading hours.

Article printed from InvestorPlace Media, https://investorplace.com/2018/08/zillow-group-zzg-stock-nosedives-on-weak-q2-guidance-acquisition/.

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