Zillow Group Inc. (NASDAQ: Z) reported a 90% decline in revenue year-over-year for the first quarter of 2023 amid the still tumultuous housing market.
The historic decline was primarily attributed to the company's planned shift away from home-flipping, which was already priced into its shares. Despite this, the reported net sales for the quarter reached $469 million, exceeding analysts' estimates of $425 million.
Zillow's earnings also beat the Street's predictions, reporting earnings of 35 cents per share after adjusting for stock compensation and other factors.
On the other hand, Apollo Global Management's Anywhere Real Estate Inc. (NYSE: HOUS), which owns major real estate brands including Coldwell Banker, Century 21 Real Estate, and Better Homes and Gardens Real Estate, saw its shares plummet by almost 15% following the company's quarterly earnings report.
Anywhere reported losses of $1.61 per share, significantly higher than the expected 79 cents per share loss, and also missed analyst estimates on revenue with $1.13 billion versus an estimate of $1.14 billion.
Looking ahead, Seattle-based Redfin Corp. (NASDAQ: RDFN) is set to report its earnings after the closing bell on Thursday. Analysts expect Redfin to report losses of $1 per share on revenues of $314.5 million.
The spring homebuying season has yet to get hot, and it may not get there. Mortgage rates increased by 15 basis points in April, while pending and existing home sales slumped in March.
Although the median existing-home sales price edged lower year-over-year for the second consecutive month, nationwide price declines are unlikely as tight inventory issues continue to keep prices high, perpetuating affordability challenges.
The nation's housing supply remains limited, partly due to those who purchased homes in recent years at record-low interest rates staying put due to the lock-in effect.