Zillow Inc(NASDAQ:Z), the real estate website, declared its third-quarter results in line with expectations. However it has forecast a bleak picture for the fourth quarter due to reduced business in its display advertising segment. This sent the company’s shares in a downward spiral in aftermarket trading.
CEO Spencer Rascoff told Reuters that lower demand for homes will lead to lower business. Already Foreclosure.com has stopped using Zillow for display advertising.
In the fourth quarter, the company sees revenue of $30 million to $31 million, against analyst expectations of $32.5 million.
In the third quarter, the Seattle based company earned a net income of $2.3 million or 7 cents a share against a loss of $570,000 last year. Revenue rose 67 percent to $31.9 million. The results were in line with Street estimates.
However weak guidance resulted in the stock falling 17 percent to $28.76 in pre-market trading.
EOG Resources, Inc.(NYSE:EOG) on the other hand, posted results that beat Street expectations.
However, profits for the third quarter dropped 34 percent, despite high revenues, because of increase in expenses.
EOG, a spinoff from Enron, has been increasingly focusing on oil production because of persisting weakness in natural gas prices.
The company earned a net income of $355.5 million or $1.31 a share in the quarter. Last year, the profit had been $540.9 million or $2.01 a share. Without taking into consideration items like impairment charges, mark to market accounting adjustments and others, net income per share was $1.73, up from 83 cents last year.
Net operating revenue for the quarter was $2.95 billion, an increase of 2.4 percent.
Analysts had expected the company to earn $1.12 a share on revenue of $2.76 billion.
EOG Resources has raised its production target for the year from 9 percent to 10.6 percent.
The stock rose 5% to $122.50 in pre-open trading.