Zillow tumbles after Q3 miss, weak guidance

By Reuters News

** Shares of real estate platform Zillow ZG.O tumble 15.1% to $29.25 after Q3 results, Q4 forecast miss Wall Street's expectations

** ZG stock on course for biggest one-day pct drop since 16.5% drop on Feb 11, if losses hold

** Co said Q3 rev rose 7% yr/yr to $724 mln, below LSEG estimate of $754.2 mln, citing "one of the toughest housing markets in a generation"

** It posted Q3 adj EPS of 55 cents and adj EBITDA of $182 mln; analysts had modeled earnings of of 59 cents/sh and adj EBITDA of $193.73 mln

** Traffic to its apps and sites in the qtr fell 3% to 215 mln average monthly unique users; visits during qtr fell 5% to 2.3 bln

** Piper Sandler cuts its PT to $39 from $46, saying ZG's Q4 guidance for rev of $635-$665 mln and adj EBITDA of $100-$135 mln were well below consensus of $711 mln and $186 mln, respectively

** Other brokerages also reduce PTs, including BofA to $32 from $37, Wells Fargo to $30 from $31

** 13 of 27 brokerages rate the stock "strong buy" or "buy", 14 "hold"; median PT $39.50

** Last week, ZG said it will pay $212.5 mln to settle a class action accusing it of misleading shareholders about its failed home-flipping venture

** Through Weds, ZG stock shed ~50% compared to about 11% advance in the Nasdaq .IXIC

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