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Why Is CoStar (CSGP) Up 4.7% Since Last Earnings Report?
CSGPCoStar Group(CSGP) ZACKS·2024-11-21 17:35

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 693million,slightlymissingestimatesby0.55693 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 44millioninQ3[4]−Multifamilyrevenueswere44 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 71million,missingestimatesby0.1171 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 32.3millionbeatestimatesby1.4132.3 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 4.93billionasofSeptember30,2024,aslightincreasefrom4.93 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 991.5millionasofSeptember30,2024[13]−Cashgeneratedfromoperationswas991.5 million as of September 30, 2024 [13] - Cash generated from operations was 298 million, up from 189.2millioninthepreviousquarter[13]FutureGuidance−ForQ42024,CoStarexpectsrevenuesbetween189.2 million in the previous quarter [13] Future Guidance - For Q4 2024, CoStar expects revenues between 693 million and 703million,indicatingapproximately9703 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 86million[15]−EarningspershareforQ42024areprojectedtobebetween21centsand23cents[16]−Forthefullyear2024,revenuesareexpectedtobebetween86 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 2.73billion,reflectingapproximately112.73 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]