- CoStar has revised its fiscal year revenue forecast downward. The new forecast is between $2.72 billion and $2.73 billion, compared to the previous range of $2.74 billion to $2.75 billion.
- The company’s revenue estimate was initially $2.75 billion, which has not been met.
- Adjusted earnings per share (EPS) for the fiscal year are expected to be between 67 cents and 69 cents.
- For the fourth quarter, CoStar projects an adjusted EPS range of 21 cents to 23 cents.
- Revenue for the fourth quarter is forecasted to be between $693 million and $703 million, below the market estimate of $713.8 million.
- In the third quarter, CoStar reported revenue of $692.6 million, marking an 11% increase year-over-year but falling short of the estimated $696.1 million.
- The adjusted EPS for the third quarter was 22 cents, a decrease from 30 cents in the same quarter the previous year.
- The company expects fourth-quarter 2024 revenue growth of approximately 9% year-over-year at the midpoint of the new forecast range.
- Adjusted EBITDA for the fourth quarter is anticipated to be between $76 million and $86 million.
- Investor sentiment includes 12 “buy” recommendations, 3 “hold” recommendations, and no “sell” recommendations.
Costar Group on Smartkarma
Analyst coverage of Costar Group on Smartkarma has been positive, with Value Investors Club publishing a recent report on Friday, Mar 29, 2024. The report, authored by an unnamed analyst, leans bullish on Costar Group Inc (CSGP) as it highlights the potential impact of a settlement that could lead to the unbundling of buy-side commissions. This development is seen as disruptive to the traditional US portal model and could drive CSGP stock higher. The report also points out the significant opportunities presented to CSGP’s homes.com business, with expectations of rapid growth in traffic and monetization. Despite trading in-line with historical valuation, CSGP is regarded as offering a cheap option on homes.com network for further growth.
A look at Costar Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Costar Group, a prominent player in the commercial real estate industry, displays a mixed picture in the Smart Scores analysis. With a respectable score in Growth and a strong rating in Resilience, the company seems well-positioned for future expansion and able to weather market challenges effectively. Momentum is also on its side, indicating favorable market sentiment towards the company.
However, Costar Group lags behind in Dividend, suggesting that it may not be an attractive option for income-focused investors. Despite a moderate Value score, which hints at a decent valuation, the lower Dividend score might deter some investors seeking regular income streams. In conclusion, while Costar Group shows promise in growth and resilience, investors may need to consider their investment goals carefully when evaluating this company.
### CoStar Group Inc. provides building-specific information to the United States commercial real estate industry and related industries. The Company’s database details office and industrial space. The database provides digitized photographs and floor plan images on individual commercial buildings in the company’s markets. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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