FINWIRES · TerminalLIVE
FINWIRES

Zillow Likely to Post 'Fine' Q2 Results, but Industry Data Points to Deceleration in Q3, RBC Says

By

Zillow (ZG) is likely to post "fine" Q2 results, but Q3 industry trends indicate deceleration despite the Street guiding for stable sequential growth, RBC Capital Markets said in a Tuesday research report.

Channel checks indicated continued friction in Q2, with Zillow Home Loans generating polarizing feedback, according to the note. The company will report Q2 results on Aug. 5.

The dismissal of a lawsuit alleging Zillow's involvement in a scheme of routing homebuyers to agents paying Zillow referral fees and steering buyers to Zillow Home Loans, inflating home costs, is a bigger structural positive for the company, analysts wrote.

The company is allowing agents to get pre-approval credit from non-company sourced leads, which is helping, but the tension remains where agents value Flex leads and still find it difficult to incorporate into their process, analysts noted.

The brokerage said it reiterated its outperform rating on the stock and price target of $70 per share.

Price: $33.51, Change: $+1.52, Percent Change: +4.74%

Related Articles

Wire

AuMEGA Metals Starts Inaugural Diamond Drilling at Canada Targets; Shares Fall 9%

AuMEGA Metals (ASX:AAM) started inaugural diamond drilling at targets at Isle aux Morts Granite and and the adjoining Cape Ray West area along the Cape Ray shear zone in Canada, according to a Tuesday Australian bourse filing.The drilling program is designed to test a series of structural, geochemical, and geophysical targets defined by integrating geological mapping, surface geochemistry, geophysics, and structural interpretation, per the filing.The company's shares fell nearly 9% in recent trading on Tuesday.

ASX:AAM
Wire

Brown & Brown Q2 Adjusted Earnings, Revenue Rise

Brown & Brown (BRO) reported Q2 adjusted earnings late Monday of $1.07 per diluted share, up from $1.03 a year earlier.Analysts polled by FactSet expected $1.08.Revenue in the three months ended June 30 rose to $1.68 billion from $1.29 billion a year earlier.Analysts expected $1.71 billion.The company's shares fell 1.8% in after-hours trading.

$BRO
Wire

Celestica Q2 Adjusted Earnings, Revenue Rise; Shares Gain After Hours

Celestica (CLS) reported Q2 adjusted earnings late Monday of $2.54 per diluted share, up from $1.39 a year earlier.Analysts polled by FactSet expected $2.27.Revenue in the three months ended June 30 rose to $4.7 billion from $2.89 billion a year earlier.Analysts expected $4.33 billion.Celestica expects Q3 adjusted EPS of $2.88 to $3.08 on revenue of $5.25 to $5.55 billion.Analysts project EPS of $2.65 on revenue of $4.94 billion.The company boosted full-year guidance to adjusted EPS of $11.30 on revenue of $20.5 billion from the prior forecast of EPS of $10.15 on revenue of $19 billion.Analysts project EPS of $10.13 on revenue of $18.95 billion.Celestica shares rose 9.4% in after-hours trading.

$CLS