Everything you need to know before earning

Online real estate marketplace Zillow ( NASDAQ:ZG ) will report earnings tomorrow afternoon. Here’s what to look for.

Zillow beat analysts’ revenue expectations by 6.3% last quarter, reporting revenue of $572 million, up 13% year over year. It was an extraordinary quarter for the company, impressively beating analysts’ EBITDA estimates.

Is Zillow a buy or sell that goes into earnings? Read our full analysis here, it’s free.

This quarter, analysts expect Zillow’s revenue to grow 11.9% year-over-year to $555.2 million, an improvement from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Most analysts that cover the company have reaffirmed their estimates over the last 30 days, suggesting that they expect the company to maintain its earnings trajectory. Zillow has a history of beating Wall Street expectations, beating earnings estimates every single time over the past two years by an average of 5.7%.

Looking at Zillow’s peers in the real estate services segment, some have already reported their Q3 results, giving us a hint of what to expect. Compass delivered year-over-year revenue growth of 11.7%, which met analysts’ expectations, and CBRE reported revenue of 14.8%, topping estimates by 2.7%. Compass’ share price was unchanged following the results, and CBRE’s share followed a similar reaction.

Read our full analysis Compass’ results here and CBRE’s results here.

Investors in the real estate services segment have had steady hands to earn, with share prices up 2% on average over the past month. Zillow’s share price was unchanged at the same time and is on track for earnings with an average analyst price target of $64 (compared to the current share price of $58.75).

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