Investors Concerned About Weaker Q4 Outlook
- Zillow’s stock drops 4% after lowering revenue outlook
- Investors concerned about weaker outlook for current quarter
- Zillow reports Q3 loss of $28 million, compared to $53 million loss in year-ago quarter
- Adjusted earnings of 33 cents per share, beating analyst expectations
- Revenue rose 3% to $496 million
- Zillow lowers revenue outlook for Q4 to $430-455 million
- Missouri court decision on real-estate commissions expected to bring industry changes
- Zillow expects to benefit from increased transparency and negotiability
Zillow Group Inc. reported quarterly results that exceeded analyst expectations, but the stock fell 4% due to the company’s weaker revenue outlook for the current quarter. In Q3, Zillow incurred a loss of $28 million, an improvement from the $53 million loss in the same period last year. Adjusted earnings were 33 cents per share, surpassing analyst estimates. Despite the positive results, Zillow lowered its revenue outlook for Q4 to $430-455 million, down from the previous guidance of $458-486 million. This adjustment comes as a Missouri court decision on real-estate commissions is expected to bring industry changes. Zillow, not involved in the litigation, anticipates benefiting from increased transparency and negotiability in forward-leaning markets. Despite the stock drop, Zillow’s shares have outperformed the broader market, up 13% year-to-date.
Factuality Level: 7
Factuality Justification: The article provides information about Zillow Group Inc.’s quarterly results and revenue outlook. It includes quotes from the company’s CEO and mentions a Missouri court decision that could impact the real estate industry. The article does not contain any obvious bias or opinion masquerading as fact. However, it lacks in-depth analysis and context, and some information is repetitive. Overall, the article provides a basic overview of the topic but could benefit from more thorough reporting.
Noise Level: 3
Noise Justification: The article provides relevant information about Zillow’s quarterly results and revenue outlook. However, it contains some filler content such as the mention of text-to-speech technology and the stock performance comparison with the S&P 500 index, which are not directly related to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: Zillow Group Inc.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Zillow Group Inc.’s quarterly results and its impact on the stock market. However, there is no mention of an extreme event.
Public Companies: Zillow Group Inc. (ZG)
Key People: Rich Barton (Co-founder and Chief Executive)
Reported publicly:
www.marketwatch.com 
