Core Insights - CoStar Group (CSGP) is expected to report quarterly earnings of $0.22 per share, a decline of 33.3% year-over-year, with revenues forecasted at $701 million, reflecting a 9.5% increase compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reassessed their initial estimates [1][2] Revenue Estimates - Analysts predict 'Revenues- CoStar' to be $260.69 million, representing a year-over-year increase of 9.7% [4] - The estimate for 'Revenues- Information Services' is $31.19 million, indicating a decline of 27% year-over-year [4] - 'Revenues- Other Marketplaces' are expected to reach $32.10 million, reflecting a decrease of 14.2% from the same quarter last year [4] - 'Revenues- LoopNet' is forecasted at $71.72 million, showing a growth of 4.7% year-over-year [5] - 'Revenues- Residential' is projected to be $28.50 million, suggesting a significant increase of 185% year-over-year [5] - 'Revenues- Multifamily' is expected to reach $277.32 million, indicating a year-over-year growth of 13.8% [5] Stock Performance - CoStar shares have returned +0.1% over the past month, compared to a +3.9% change in the Zacks S&P 500 composite [5] - CoStar holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Core Insights - CoStar Group reported Q3 2024 non-GAAP earnings of 22 cents per share, exceeding estimates by 37.50% but down 26.7% year-over-year [2] - Revenues for Q3 2024 were $693 million, slightly missing estimates by 0.55% but showing a year-over-year increase of 10.9% [2] - The company raised its top-line guidance for fiscal 2024 based on strong performance in key segments [3] Revenue Breakdown - CoStar Group's revenues from its primary segment amounted to $257 million, beating estimates by 0.14% and increasing 10.1% year-over-year [4] - Apartments.com revenues rose 16% year-over-year, with net new bookings of $44 million in Q3 [4] - Multifamily revenues were $272 million, missing estimates by 0.66% but up 15.5% year-over-year [5] - LoopNet revenues reached $71 million, missing estimates by 0.11% but increasing 5% year-over-year [5] - Residential revenues were $27.7 million, missing estimates by 8.13% but showing a significant year-over-year increase of 168.9% [6] - Other marketplace revenues of $32.3 million beat estimates by 1.41% but declined 3.9% year-over-year [7] Market Performance - CoStar's U.K. residential real estate portal saw unique visitors increase by 348% year-over-year, indicating successful international expansion [8] - The company's global websites reached a record of 163 million average monthly unique visitors, a 28% increase year-over-year [7] Operating Expenses - Selling and marketing expenses rose 24.1% year-over-year to $331.2 million, constituting 47.8% of revenues [10] - General and administrative expenses increased to 15.3% of revenues, up 20 basis points year-over-year [10] - Adjusted EBITDA margin for Q3 was 11%, down from 17.9% in the previous year [12] Financial Position - CoStar Group reported cash and cash equivalents of $4.93 billion as of September 30, 2024, a slight increase from $4.91 billion as of June 30, 2024 [13] - Long-term debt remained stable at $991.5 million as of September 30, 2024 [13] - Cash generated from operations was $298 million, up from $189.2 million in the previous quarter [13] Future Guidance - For Q4 2024, CoStar expects revenues between $693 million and $703 million, indicating approximately 9% year-over-year growth at the midpoint [14] - Adjusted EBITDA for Q4 2024 is anticipated to be between $76 million and $86 million [15] - Earnings per share for Q4 2024 are projected to be between 21 cents and 23 cents [16] - For the full year 2024, revenues are expected to be between $2.72 billion and $2.73 billion, reflecting approximately 11% year-over-year growth at the midpoint [16] - Adjusted EBITDA for 2024 is forecasted to be between $205 million and $215 million [17] - Earnings per share for 2024 are expected to be between 67 cents and 69 cents [18] Market Sentiment - Estimates for CoStar have trended downward recently, with a consensus estimate shift of -13.33% [20] - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [22]

Group 1 - The stock of CoStar Group, Inc. (CSGP) is experiencing significant attention due to high implied volatility in the options market, particularly for the Jan. 17, 2025 $35 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in CoStar Group's stock price, potentially due to an upcoming event [2] - CoStar Group currently holds a Zacks Rank 3 (Hold) in the Computers - IT Services industry, which is in the top 15% of the Zacks Industry Rank, but analysts have lowered earnings estimates for the current quarter from 25 cents per share to 22 cents [3] Group 2 - The high implied volatility surrounding CoStar Group may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Group 1 - The article introduces Cody Hooper as a new contributing analyst for Seeking Alpha, encouraging others to share their investment ideas for publication and potential earnings [1] - The author emphasizes the importance of long-term investing and believes that informed and disciplined individuals can outperform the S&P 500 over time [2] - The author has over 19 years of experience studying investing and managing stock portfolios, highlighting a commitment to educating others on sound investment decisions [2] Group 2 - The article does not contain any specific company or industry analysis, focusing instead on the author's background and investment philosophy [3]

Core Viewpoint - CoStar Group (CSGP) has experienced a recent decline in share price, but the formation of a hammer chart pattern suggests a potential trend reversal due to increased buying interest and strong earnings estimate revisions from analysts [1][3]. Group 1: Technical Analysis - The hammer chart pattern indicates that the stock may have found support, with bulls potentially counteracting the bears, signaling a possible trend reversal [1]. - A hammer pattern forms when there is a small candle body with a long lower wick, suggesting that buying interest has emerged after a downtrend [2]. Group 2: Fundamental Analysis - There has been a 0.5% increase in the consensus EPS estimate for CSGP over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [3]. - CSGP holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [3].

I gave a buy rating to CoStar Group (NASDAQ: CSGP ) stock in May, with my key thesis being that the business should see its growth accelerate in the coming periods, especially with the I'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intrinsi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 0-24531 csgp-logoa01a22.jpg CoStar Group, Inc. (Exact name of registrant as specified in its charter) Delaware 52-2091509 (St ...

CoStar posted disappointing results in its earnings report. Shares of CoStar Group (CSGP -9.03%), the leading commercial real estate listing platform, were falling after the company delivered disappointing results in its third-quarter earnings report today. As a result, the stock was down 9.1% as of 11:08 a.m. ET on the news. CoStar's growth isn't enough CoStar reported 11% revenue growth to $692.6 million, though that was short of the consensus at $696.1 million. The performance marked its 54th consecutive ...

CoStar Group (CSGP) reported non-GAAP earnings of 22 cents per share in third-quarter 2024, which surpassed the Zacks Consensus Estimate by 37.50% but plunged 26.7% year over year.Revenues of $693 million missed the Zacks Consensus Estimate by 0.55% and increased 10.9% year over year. The upside was driven by robust performance in key segments.CSGP raised its top-line guidance for fiscal 2024 based on the third-quarter 2024 results and robust performance in key segments.The company’s shares have plunged 12. ...

Financial Data and Key Metrics Changes - CoStar Group reported Q3 2024 revenue of $693 million, an 11% increase year-over-year, marking the 54th consecutive quarter of double-digit growth [5] - Net income grew to $53 million, up from $7 million in Q1 2024, while adjusted EBITDA reached $76 million, exceeding guidance [6][49] - The profit margin for commercial information and marketplace businesses increased to 43% in Q3 2024 [6] Business Line Data and Key Metrics Changes - CoStar revenue grew by 10% in Q3 2024, maintaining a full-year guidance of 10% growth [46] - Apartments.com revenue increased by 16% in Q3 2024, with a full-year guidance of 17% growth [47] - LoopNet revenue grew by 5% in Q3 2024, in line with mid-single-digit growth guidance [47] - Homes.com generated $28 million in revenue for Q3 2024, with expectations to reach approximately $100 million for the full year [47] Market Data and Key Metrics Changes - The commercial real estate market has shown signs of improvement, with leasing volume returning to pre-pandemic levels [41] - The multifamily sector absorbed 174,000 units, indicating strong demand despite elevated vacancy rates [40] - The office sector experienced an all-time high in vacancy rates, but early signs of recovery are emerging [41] Company Strategy and Development Direction - CoStar Group is focused on expanding its sales force across all product lines, including CoStar, Apartments.com, LoopNet, and Homes.com, to capitalize on market opportunities [45][46] - The company is investing in building a dedicated sales force for Homes.com, aiming to enhance its market presence and revenue generation [30] - CoStar's strategy emphasizes reinvestment into growth rather than maximizing short-term margins, positioning itself for long-term shareholder value [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in 2025, anticipating a shift from headwinds to tailwinds as market conditions improve [51][52] - The company is confident in its ability to grow its customer base and revenue despite current market challenges [39] - Management highlighted the importance of the Homes.com product and its potential to capture significant market share in the residential real estate sector [19][20] Other Important Information - CoStar Group has a strong balance sheet with $4.9 billion in cash and a net interest income of $56 million [49] - The company announced the acquisition of Visual Lease, expected to enhance its real estate management services [38][50] Q&A Session Summary Question: How is the growth outlook for businesses like Suite and LoopNet in 2025? - Management noted that improvements in the commercial real estate market could provide a tailwind for growth, with opportunities to expand penetration rates into various customer segments [51][52] Question: Can you elaborate on the recent uptick in sales and the distractions faced? - Management acknowledged that while there was an uptick in CoStar sales, the dual focus on Homes.com distracted sales teams from their core products, leading to a temporary slowdown [54][55] Question: What are the potential seasonality effects on the Homes.com business? - Management indicated that early challenges were more related to the sales force's inexperience with the new product rather than seasonality, and they expect high renewal rates from agents with consistent listings [59][60]