Zillow Stock Jumps on Third-Quarter Revenue Growth, Narrower Loss

Zillow Group (Z) shares are jumping in premarket trading Thursday, after the real estate firm posted strong third-quarter sales gains and narrowed its losses.

Zillow reported third-quarter revenue of $581 million, up 17% year-over-year, and above the midpoint of the range the company had previously offered. Its net loss for the three months to Sept. 30 narrowed to $20 million, from a $28 million loss the same period last year.

Sales during the period outperformed the 2% total transaction value growth of broader residential real estate industry, the listings site said, citing the National Association of Realtors (NAR). The company also offered a fourth-quarter revenue outlook of $525 million to $540 million, with analysts tracked by Visible Alpha looking for about $537 million.

Zillow’s shares were up some 15% in early trading after TK yesterday.

Zillow Stock Has Surged Since New CEO Named in August

Zillow is projecting fourth-quarter revenue in the range of $525 million to $540 million and said it is sticking with its forecast for full-year double-digit revenue growth.

The company’s stock is up 40% through Wednesday’s close since it named a new Chief Executive Officer (CEO), former Chief Operating Officer (COO) Jeremy Wacksman, alongside better-than-expected second-quarter results, in early August. The shares are just a few percentage points in the green for the year, though.

The company has been a beneficiary of lower U.S. mortgage rates, according to analysts, U.S. 30-year mortgage rates, currently at a 6.91% average, have fallen off their 2024 high of 7.52% on April 25.

JPMorgan analysts raised their price target on Zillow to $78 from $61, citing a “solid outlook” amid a “challenging housing market.”