NEW YORK (TheStreet) -- Shares of Zillow were falling 6.2% to $87.15 on heavy trading volume Tuesday after the online real estate database company warned that it will miss analysts' estimates in fiscal 2015. During an investor's call Zillow said it expects to report revenue of about $690 million for fiscal 2015. Analysts expect Zillow to report revenue of $750 million for the year. The company also said it expects to report EBITDA in the range of $80 million to $85 million, with a fourth quarter of margin of over 20%. Zillow said the lower revenue and EBITDA were a result of its acquisition of Trulia. "The work we are doing this year lays the foundation for an incredibly bright 2016 and 2017," CEO Spencer Rascoff said. "However, 2015 is a transition year and we're trending a couple quarters behind where we'd like to be, due to the protracted FTC approval process which only ended two months ago." About 5.8 million shares of Zillow were traded by 10:46 a.m. Tuesday, above the company's average trading volume of about 1.9 million shares a day. TheStreet Ratings team rates ZILLOW GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate ZILLOW GROUP INC (Z) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: Z's very impressive revenue growth greatly exceeded the industry average of 18.9%. Since the same quarter one year prior, revenues leaped by 58.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Z has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.95, which clearly demonstrates the ability to cover short-term cash needs. The gross profit margin for ZILLOW GROUP INC is currently very high, coming in at 92.11%. Regardless of Z's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, Z's net profit margin of -11.80% significantly underperformed when compared to the industry average. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, ZILLOW GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has decreased to $12.16 million or 35.17% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: Z Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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