Zillow Posts Surprise Loss on $36M Restructuring Hit, Revenue Beats
Z is trading near its 52-week low of $29.23 (11% above the low).
Summary
Zillow swung to a $4M loss in Q2, hit by $36M in restructuring costs tied to the 500+ job cuts announced yesterday. Adjusted EPS of 52c beat the 45c consensus, and revenue rose 18% to $772M, topping estimates. The restructuring aims to streamline costs after losing key Chicago-area listings in May and facing a securities fraud lawsuit. The earnings beat on an adjusted basis may cushion the blow, but the headline loss and ongoing legal overhang keep pressure on the stock.
At the time of this announcement, Z was trading at $32.50 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $8.3B. The 52-week trading range was $29.23 to $93.88. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.