Zillow Group's stock fell 5.89% in after-hours trading on Tuesday, following the release of its fourth-quarter financial results.

The company reported adjusted earnings per share of $0.39, which missed the analyst consensus estimate of $0.40. Quarterly sales of $654 million exceeded expectations of $650.287 million, but the earnings shortfall weighed on investor sentiment.

Options activity prior to the earnings release had indicated market anticipation of significant post-earnings price movement, with implied volatility suggesting an approximate 8.5% to 9.3% move.