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CoStar Group shares tumble over 6% as FY24 guidance trails estimates

EditorRachael Rajan
Published 2024-07-23, 04:30 p/m
© Reuters.
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WASHINGTON - CoStar Group , Inc. (NASDAQ: NASDAQ:CSGP), a leading provider of online real estate marketplaces, information, and analytics, reported second-quarter earnings that surpassed analyst expectations, but its stock fell sharply by 6.7% as earnings guidance fell short of Wall Street estimates.

For the quarter ending June 30, 2024, CoStar announced adjusted earnings per share (EPS) of $0.15, which was $0.06 higher than the analyst consensus of $0.09. Revenue for the quarter was slightly above expectations at $677.8 million, compared to the consensus estimate of $677.61 million, marking a 12% increase from the $606 million reported in the same quarter of the previous year.

CoStar provided third-quarter EPS guidance in the range of $0.15 to $0.16, below the analyst consensus of $0.18. Additionally, the company's full-year 2024 EPS guidance is forecasted between $0.64 and $0.66, narrowly above the consensus estimate of $0.62.

Andy Florance, Founder and CEO of CoStar Group, attributed the strong quarter to robust revenue growth, particularly in their Apartments.com and CoStar Suite businesses, which saw growth rates of 18% and 10%, respectively. He also highlighted the significant achievement of Homes.com, which reached over $55 million in net new bookings through June.

Chris Lown, CFO of CoStar Group, expressed confidence in the company's core commercial business and progress with Homes.com. He noted that the company expects to see approximately 12% revenue growth year-over-year at the midpoint of the range for the full year of 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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