This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Zillow Earnings Preview: Wall Street's Saying

A previous version of this article said Zillow was expected to generate $54.43 billion in revenue for the fourth quarter. It's expected to generate $54.43 million. TheStreet regrets this error.

NEW YORK (TheStreet) -- Online real estate giant Zillow (Z) reports fourth-quarter earnings after market close, and all eyes will be focused on whether it can keep growing its traffic at a breakneck pace.

Traffic has grown exceptionally fast at Zillow, as the company has seen 11 straight months of over 50% year-over-year growth. January 2014 was one of the strongest months yet.

Shares of Zillow were higher in early Wednesday trading, gaining 1.04% to $88.40.

Earlier this month, Zillow noted January saw 70 million unique users, up 52% year-over-year, and 34% from December. Benefiting the company's results is the expansion into mobile, as Zillow's mobile initiatives dominate its competitors, including Trulia (TRLA) and others. In the January release of monthly traffic, Zillow noted it was 2.5 and 4 times the size of its two closest competitors on market share of visits.

Z ChartZ data by YCharts

Analysts surveyed by Thomson Reuters are looking for the company to earn 7 cents a share on $54.43 million in sales for the fourth quarter.

In January, Zillow announced it would expand its reach, partnering with AOL (AOL), powering the site's home shopping experience, and continuing to expand Zillow's presence in the massive online real estate market. Zillow now powers four of the top real estate sites in the country: Zillow, Yahoo! Real Estate, AOL Real Estate and HGTV's FrontDoor.com.

In addition, TheStreet is partnering with Zillow to allow additional investors and interested parties to ask Zillow questions, using social media, with the hashtag #ZEarnings on both Facebook and Twitter. I'll be conducting a satellite interview with CEO Spencer Rascoff to discuss the earnings report as well.

Going into the report, analysts are largely positive. Here's what several of them had to say on its prospects for the fourth quarter:

JMP Securities analyst Ronalod Josey (Market Outperform, $100 PT)

"We believe Zillow will report another strong quarter in terms of Premier Agent net additions, revenue, and EBITDA in what is the seasonally slowest calendar quarter. Our checks with agents suggest Zillow continues to deliver leads and is increasingly becoming a 'must buy' among agents. Some of the key items we'll be watching for this quarter include: 1) Premier Agent net additions, ARPU, & leads growth; 2) 2014 guidance with a focus on incremental marketing spend-we project an incremental $10-$20 million; 3) 4Q traffic growth and its impact on Display rev.; 4) Progress in monetizing rentals and the addition of a sales force; and 5) Adoption from Zillow's co-marketing program with lenders."

Goldman Sachs analyst Heath Terry (Hold, $80 PT)

"We expect revenue of $55.2mn and adjusted EBITDA of $8.6mn, both below consensus and near the bottom of the guidance range.

According to comScore, Zillow desktop traffic growth moderated to +40.3% in Q4 from +50.9% in Q3, while mobile traffic growth accelerated to +231% in Q4, up from +226% in Q3.

While Zillow traffic growth outpaces revenue growth, we believe the company may be able to bridge this gap as it monetizes adjacent businesses."

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs