Zillow shares jump on home-flipping outlook
Zillow's home-flipping business is expected to help the company top analyst revenue expectations.
Shares of the real estate database company rose 11 percent in Friday's session.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZG | ZILLOW GROUP INC. | 70.73 | -1.27 | -1.76% |
The company said its home-flipping business is expected to generate as much as $1.25 billion this year.
That segment added $384.6 million in revenue in the September quarter.
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With that included, Zillow sees total revenue at $2.59 billion to $2.62 billion for the year.
Analysts' are looking for $2.53 billion.
HIGH-END HOMEBUYER IS ON THE RISE
"The third quarter marks the first time home segment exceeded our IMT revenue coming in at $385 million ahead of our outlook and up from just $11 million in the third quarter of 2018," said Rich Barton, co-founder and CEO. "During the quarter we purchased nearly 2,300 homes and sold more than 1,200 homes."
The company's efforts to expand continues to restrain the bottom line as expenses pile up.
On Thursday, Zillow reported its net loss for the September quarter widened to $64.6 million from about $492,000 a year earlier, while revenue more than doubled to $745.2 million, driven by the homes segment.
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The results easily beat analysts' expectations.