Higher Interest Rates Hit Zillow's Mortgages Revenue In Q3, Stock Slips

Zillow Group, Inc. Z shares are trading lower in Wednesday’s after-hours session on the heels of the company’s third-quarter results.

What To Know: Zillow reported quarterly earnings of 33 cents per share, which beat the analyst consensus estimate of 23 cents, representing a 13.16% decrease over earnings of 38 cents per share from the same period last year.

The company reported quarterly sales of $496.00 million, exceeding the analyst consensus estimate of $480.30 million, a 2.69% increase over sales of $483.00 million from the same period last year.

The effect of higher interest rates on demand for Zillow’s mortgage marketplace was attributed to the 8% year-over-year decline in Mortgages revenue, reported at $24 million.

Zillow co-founder and CEO Rich Barton commented on upbeat residential revenue figures, stating, “Despite a residential real estate industry that is down 14% from last year, Zillow is reporting positive growth: 3% in our total revenue, 34% in our rentals revenue, and 88% in our purchase mortgage origination business.”

“We have strong momentum across the board, and it’s because we’re focused on building a better, more integrated real estate transaction experience for both movers and partners.”

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Z Price Action: Shares of Z were down 3.98% at $35.01 in the after-hours session at the time of publication, according to Benzinga Pro.

Image by Paul Brennan from Pixabay