Higher Interest Rates Hit Zillow's Mortgages Revenue In Q3, Stock Slips
Portfolio Pulse from Ryan Gustafson
Zillow Group, Inc. (NASDAQ:Z) reported Q3 earnings of 33 cents per share, beating the analyst consensus estimate of 23 cents. However, this represents a 13.16% decrease from the same period last year. Quarterly sales were $496.00 million, exceeding the analyst consensus estimate of $480.30 million. The company's Mortgages revenue declined by 8% year-over-year due to the effect of higher interest rates. Despite this, Zillow's CEO Rich Barton reported positive growth in other areas of the business.
November 01, 2023 | 9:19 pm
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Zillow's Q3 earnings beat estimates but were lower than the same period last year. Higher interest rates negatively impacted the company's Mortgages revenue.
Zillow's earnings beat estimates, which is generally positive for the stock. However, the year-over-year decrease in earnings and the negative impact of higher interest rates on the company's Mortgages revenue could negatively affect investor sentiment and the stock price in the short term.
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