Valued at a market cap of $30.2 billion, CoStar Group, Inc. (CSGP) provides information, analytics, and online marketplace services for the commercial real estate, hospitality, and residential industries. The Washington, District of Columbia-based company's services span property databases, real estate management tools, tenant information, and a range of online platforms for property marketing and transactions. The company is expected to report its fiscal Q3 earnings results after the market closes on Tuesday, Oct. 22.
Ahead of this event, analysts expect the real estate information provider to report a profit of $0.11 per share, down 56% from $0.25 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. In the most recent quarter, the company exceeded the consensus estimate by a significant margin of 175%.
For fiscal 2024, analysts expect CSGP to report EPS of $0.49, a 54.2% decline from $1.07 in fiscal 2023. However, in fiscal 2025, the EPS is projected to rebound strongly, growing 118.4% year-over-year to $1.07 per share.
CSGP stock decreased 14.6% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 19.5% rise and the Real Estate Select Sector SPDR Fund's (XLRE) 8.9% gain over the same period.
Shares of CoStar Group rose over 2% following its better-than-expected Q2 earnings release on Jul. 23, with adjusted net income of $0.15 per share and revenue of $678 million. The company's strong revenue growth, up 12% year-over-year, reflects robust performance in key segments like Apartments.com and Multifamily. Additionally, the company’s milestone of 99 million unique visitors on Homes.com, a 197% year-over-year surge, further boosted investor confidence.
Analysts' consensus rating on CoStar Group stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 13 analysts covering the stock, opinions include seven "Strong Buys," three "Moderate Buys," and three "Holds." This configuration is slightly less bullish than three months ago, with eight analysts suggesting a "Strong Buy."
The average analyst price target for CSGP is $95.09, suggesting a modest potential upside of 28.7% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
