• Zillow Group shares jumped in premarket trading on Thursday after the real estate company posted strong third-quarter revenue gains and narrowed its losses.

• Zillow reported third-quarter revenue of $581 million, up 17% from a year ago.

• Since Jeremy Wacksman was named new CEO in August, the company’s shares have risen 40%.
  

Zillow Group (Z) shares are rising in premarket trading on Thursday after the real estate company posted strong third-quarter revenue gains and narrowed its losses.

Zillow reported third-quarter revenue of $581 million, up 17% from a year earlier and above the midpoint of the range the company had previously offered. Net loss for the three months ended September 30 narrowed to $20 million, compared with a loss of $28 million in the same period last year.

Sales in the period exceeded the broader residential real estate industry’s 2 percent overall transaction value growth, the listing website said, citing the National Association of Realtors (NAR). The company also gave fourth-quarter revenue guidance of $525 million to $540 million, with analysts tracked by Visible Alpha expecting about $537 million.

Shares of Zillow rose about 15% in early trading yesterday after TK.

Zillow forecast fourth-quarter revenue in the range of $525 million to $540 million and maintained its forecast for double-digit revenue growth for the full year.

The company’s stock has risen 40% through Wednesday’s close since the company named a new chief executive officer (CEO), former chief operating officer (COO) Jeremy Wacksman, in early August, along with better-than-expected results for the second quarter quarter presented. However, the shares are only a few percentage points in the green for the year.

The company benefited from lower US mortgage rates. U.S. 30-year mortgage rates, currently averaging 6.91%, fell from their 2024 peak of 7.52% as of April 25, according to analysts.

JPMorgan analysts raised their price target on Zillow to $78 from $61, citing a “solid outlook” amid a “challenging real estate market.”