Stocks were mostly unchanged Tuesday. The Dow Jones Industrial Average (DJINDICES: ^DJI) had a tiny gain and the S&P 500 (SNPINDEX: ^GSPC) lost less than a point.
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Energy stocks rose after President Trump announced the U.S. would withdraw from the Iran nuclear accord. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT: XOP) gained 2.1%. Utility stocks fell on rising interest rates, with the Utilities Select SPDR ETF (NYSEMKT: XLU) dropping 2.5%.
As for individual stocks, Zillow (NASDAQ: Z) (NASDAQ: ZG) fell slightly after the company reported earnings, while Camping World Holdings (NYSE: CWH) plunged on first-quarter results.
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Zillow reports 22% revenue growth
Real estate services specialist Zillow's first-quarter earnings met expectations for revenue and beat on the bottom line, but the company announced soft guidance and the departure of its chief financial officer, and Class C shares fell 1.5%. Revenue grew 22% to $299.9 million. The company is not profitable on a GAAP basis, but adjusted earnings came in at $0.07, a penny better than analysts were predicting.
Premier agent revenue grew 22% to $213.7 million and rentals revenue increased 35% to $29.1 million. Average monthly unique users grew 5% to 175.5 million, and visits jumped 15%.
Looking forward, Zillow guided to Q2 revenue of between $322 million to $327 million, well below the analyst consensus of $355 million. The company did raise its revenue guidance for the full year, though, from a range of $1.3 billion to $1.32 billion estimated last quarter to $1.43 billion to $1.58 billion.
"This year, we are taking our business beyond lead generation by creating better experiences for consumers and further strengthening our partnerships with real estate professionals," said CEO Spencer Rascoff in the press release. "Our opportunity is expanding with the introduction of innovative products and services, like Zillow Instant Offers, that provide end-to-end solutions for consumers and will generate more home-related transactions across our platforms."
Last month the company unveiled its Instant Offers program, which spooked investors concerned about capital requirements and risk, although the stock recovered in the weeks to follow. The earnings report today offered little in the way of surprises, and investors took it in stride.
Camping World tumbles on RV price worries
Shares of Camping World Holdings plunged 16.7% after the company reported first-quarter results that got investors worried about slowing same-store sales growth due to falling RV prices. Revenue increased 20.4% to $1.06 billion, edging out the analyst consensus of $1.05 billion. Adjusted EPS grew 9.7% to $0.41, missing expectations by $0.01.
Same-store sales increased 3.9%, below the 11.9% gain last quarter and the 9.6% increase in the period a year earlier. The number of RVs sold grew 21%, but average selling prices fell 4.3%. Factoring into the same-store sales growth was a 22% increase in finance and insurance sales.
Weather was also cited as a factor. "While the unseasonably cold weather throughout a good portion of the country has likely impacted the early part of the peak selling season, we believe the backdrop across the RV industry remains strong and we continue to plan our business around a mid-single digit increase in same store sales in 2018," said CEO Marcus Lemonis in the press release.
Camping World's strategy is to be the price leader on vehicles while cross-selling services and accessories. Despite decent sales growth, investors were worried about the lower average selling prices headed into the critical summer sales period, and bid the stock down to only eight times estimated 2018 earnings.
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Jim Crumly owns shares of Camping World Holdings and Zillow Group (C shares). The Motley Fool owns shares of and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool recommends Camping World Holdings. The Motley Fool has a disclosure policy.