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Zillow Stock: Company Beats Estimates for Earnings and Revenue

Zillow, the provider of real estate and related services, swung to second-quarter net income from a year-earlier loss on 70% higher revenue.
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Zillow,  (Z) - Get Zillow Group, Inc. Class C Report the Seattle provider of real estate and related services, swung to second-quarter net income from a year-earlier loss on 70% higher revenue.

Both figures exceeded Wall Street analysts' expectations.

In the quarter Zillow earned 4 cents a share compared with a loss of 38 cents a share in the year-earlier quarter. The latest adjusted earnings were 44 cents a share. Shares outstanding rose 19% to 261.5 million.

Revenue reached $1.31 billion from $768.4 million.

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A survey of analysts by FactSet produced consensus estimates of GAAP net income of a penny a share, or adjusted earnings of 24 cents a share, on revenue of $1.28 billion. 

At last check Zillow shares were trading down 3.5% at $106.36. They closed regular Thursday trading up 0.9% at $110.24.

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“Of particular note," the iBuying business, Zillow Offers, "continues to accelerate," Zillow Co-Founder and Chief Executive Rich Barton said in a statement. “Zillow Offers is proving attractive to sellers even in this sizzling-hot seller’s market."

The executive added that "we expect millennial buyers, low interest rates, and the increasing adoption of location-flexible work policies to fuel interest in moving for many years to come. And these movers will increasingly demand e-commerce-like solutions where Zillow excels.”

Zillow’s mobile apps and websites saw 229 million average monthly unique users in the quarter, up 5% from a year earlier. Total visits were 2.8 billion, up 10%.

The company ended the second quarter with cash and investments of $4.6 billion.

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Two weeks ago Zillow said in a report that housing inventory recovered significantly in June, a second month of recovery.

The figures indicated that "the market may be on the road to rebalancing after a long stint of being heavily in sellers' favor," the report said. 

"But inventory remains low and demand is still strong, sending home-value appreciation to new record highs for both monthly and annual growth."