What's your Zestimate for Zillows EPS for 2nd Quarter?
With Analysts predicting a loss of 11 cents a share, ranging between a loss of 8 cents on high side, and a loss of 13 cents on the low side, I was just curious what investors estimated as a likely outcome. We all know that CEO Spencer Rascoff set very low expectations on the last earnings call with his comments about the launch of Zillows TV advertising campaign that would hit 2nd quarter earnings - or as he said an investment in the future.
What I haven't seen is any impact of the $7.1m charge hitting Q2 earnings relating to the cost of Restrictive Stock Units (RSU's) attributable to a departing un-nanmed executive. What with the cost of recruiting a sweat shop sales team to cold call realtors; the cost or Facilities expansion; the TV advertising campaign; and then the $7.1m RSU charge, which equates to a hit of 20 cents per share itself; I was zestimating a loss around 15 cents a share which is substantially higher than the Analysts predictions. Anyone else got an opinion?
CFO Chad Cohen sold a bunch of cheap stock options yesterday; CEO Spencer Rascoff the day before ; and CTO David Beitel last Friday. The assumption must be bad news for the quarter and lets bail out whilst mugs are still supporting in mid $50's. Just draw your own conclusions but the $7.1m RSU charge blows 2nd Quarter earnings out the water, not that it should be a surprise to anyone who read the previous 10-Q.