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inners And Losers Of Q2: Zillow (NASDAQ:ZG) Vs The Rest Of The Real Estate Services Stocks
Earnings results often provide insight into a company's future trajectory, and with Q2 behind us, let's examine Zillow (NASDAQ:ZG) alongside its peers. Technology has been both a blessing and a curse for real estate services, increasing information dissemination but potentially disrupting traditional players like agents.
The 14 real estate services stocks we track reported satisfactory Q2 results, with revenues beating analysts' consensus estimates by 1.9%. However, next quarter's revenue guidance fell short of expectations by 13.1%. The Federal Reserve's dual mandate of inflation and employment has been a key driver of the market, with recent employment data suggesting the US economy may be wobbling.
Despite this, real estate services stocks have performed well, with share prices up 13.8% on average since the latest earnings results. Zillow (NASDAQ:ZG) reported revenues of $572 million, exceeding analysts' expectations by 6.3%. The stock is up 53% since reporting and currently trades at $61.76.
The Real Brokerage (NASDAQ:REAX), a technology-driven real estate brokerage firm, reported revenues of $340.8 million, outperforming analysts' expectations by 28.9%. However, the market seems unhappy with the results, and the stock is down 5.3% since reporting.
On the other hand, Offerpad (NYSE:OPAD) delivered the weakest performance against analyst estimates in the group, posting revenue guidance for next quarter that missed analysts' expectations. The stock is down 24.1% since the results and currently trades at $2.96.
Other notable performers include RE/MAX (NYSE:RMAX), which reported revenues of $78.45 million, meeting analysts' expectations, and CBRE (NYSE:CBRE), which reported revenues of $8.39 billion, exceeding analysts' operating margin estimates and full-year revenue guidance.
