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Everything you need to know before earning
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Everything you need to know before earning

Online real estate marketplace Zillow (NASDAQ:ZG) will report its results tomorrow afternoon. Here’s what you should pay attention to.

Zillow beat analysts’ revenue expectations by 6.3% in its most recent quarter, reporting revenue of $572 million, up 13% year over year. It was an exceptional quarter for the company, impressively beating analysts’ EBITDA estimates.

Is Zillow a buy or sell when it comes to profit? Read our full analysis here, it’s free.

This quarter, analysts expect Zillow’s revenue to rise 11.9% year-over-year to $555.2 million, an improvement from the 2.7% increase in the year-ago quarter. Adjusted earnings are expected to be $0.29 per share.

Zillow's total sales
Zillow’s total sales

The majority of analysts covering the company have reaffirmed their estimates in the last 30 days, indicating that they expect the company to remain on track toward earnings. Zillow has a history of exceeding Wall Street’s expectations, topping revenue estimates by an average of 5.7% each of the last two years.

Looking at Zillow’s competitors in the real estate services segment, some have already reported their third-quarter results, giving us an indication of what we can expect. Compass reported 11.7% year-over-year revenue growth, meeting analysts’ expectations, and CBRE reported 14.8% revenue growth, beating estimates by 2.7%. Compass’s share price was flat following the results, and CBRE’s share price followed a similar reaction.

Read our full analysis of Compass’s results here and CBRE’s results here.

Investors in the real estate services segment have had steady hands when it comes to collecting income, with share prices rising an average of 2% over the last month. Zillow’s share price remained flat over the same period and is heading for profitability with an average analyst price target of $64 (compared to the current share price of $58.75).

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