Zillow's stock drops 4% after real-estate company lowers revenue outlook

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Investors focused on weaker outlook for current quarter

Zillow Group Inc. late Wednesday posted quarterly results that were above analyst expectations, but the stock fell 4% as investors zeroed in on the real-estate company’s weaker revenue outlook for the current quarter.

“We have strong momentum across the board,” co-founder and Chief Executive Rich Barton said in a statement. That compares with previous guidance for revenue between $458 million and $486 million. The analysts surveyed by FactSet expect revenue of $457 million for the fourth quarter. The litigation likely will be tied up in court for years, Zillow said in the letter. Zillow, which is not a party to the several lawsuit touching upon the same issues, expects “industry changes” from the legal actions and is likely to benefit, it said.

 

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