CoStar Group, Inc. (CSGP), headquartered in Washington, the District of Columbia, offers information, analytics, and online marketplace services in the property markets. Valued at $30.3 billion by market cap, the company offers CRE research and real-time data, mobile and online real estate marketplace, rental home, and comparative analytics to the hotel industry through platforms like LoopNet, Ten-X, Homes.com, and more. The leading commercial real estate information and marketplace listing platforms provider is expected to announce its fiscal fourth-quarter earnings for 2024 on Tuesday, Feb. 18.
Ahead of the event, analysts expect CSGP to report a profit of $0.17 per share on a diluted basis, down 41.4% from $0.29 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect CSGP to report EPS of $0.52, down 51.4% from $1.07 in fiscal 2023. However, its EPS is expected to rise 80.8% year over year to $0.94 in fiscal 2025.
CSGP stock has underperformed the S&P 500’s ($SPX) 25.5% gains over the past 52 weeks, with shares down 11.1% during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 5.7% gains over the same time frame.
CSGP’s underperformance stems from persistent rate hikes, a weak real estate market, relentless inflation, and declining demand for commercial properties, disrupting growth and increasing investor concerns. Additionally, rising competition in digital property marketplaces and a tough macroeconomic environment have further pressured margins.
On Oct. 22, CSGP reported its Q3 results, and its shares closed down more than 5% in the following trading session. Its adjusted EPS of $0.22, surpassed Wall Street expectations of $0.16. The company’s revenue was $692.6 million, falling short of Wall Street forecasts of $696.5 million. CSGP expects full-year adjusted EPS to be between $0.67 and $0.69, and expects revenue to be between $2.72 billion and $2.73 billion.
Analysts’ consensus opinion on CSGP stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 12 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and three give a “Hold.” CSGP’s average analyst price target is $90.91, indicating a potential upside of 22.8% from the current levels.
