Online real estate marketplace Zillow (NASDAQ:ZG) will be reporting earnings tomorrow after market hours. Here's what to expect.

Zillow beat analysts' revenue expectations by 5% last quarter, reporting revenues of $474 million, up 9% year on year. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Zillow a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Zillow's revenue to grow 8.2% year on year to $507.3 million, a reversal from the 89% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Zillow has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 8% on average.

Looking at Zillow's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Anywhere Real Estate posted flat year-on-year revenue, missing analysts' expectations by 1.8%, and Cushman & Wakefield reported a revenue decline of 2.9%, in line with consensus estimates. Anywhere Real Estate traded down 4.6% following the results, while Cushman & Wakefield traded flat.

Read our full analysis of Anywhere Real Estate's results here and Cushman & Wakefield's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 6.2% on average over the last month. Zillow is down 9.6% during the same time and is heading into earnings with an average analyst price target of $57.7 (compared to the current share price of $42.83).

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