CoStar Group CSGP is slated to report its fourth-quarter 2024 earnings on Feb. 18.
CoStar Group expects fourth-quarter 2024 revenues between $693 million and $703 million, indicating year-over-year growth of approximately 9% at the midpoint. Earnings per share are expected to be between 21 cents and 23 cents for the fourth quarter of 2024.
The Zacks Consensus Estimate for fourth-quarter earnings has been steady at 22 cents per share over the past 30 days, suggesting a 33.33% decline from the figure reported in the year-ago quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
CoStar Group, Inc. Price and EPS Surprise
CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote
For the fourth quarter, the Zacks Consensus Estimate for revenues is currently pegged at $701 million, suggesting growth of 9.51% from the year-ago quarter’s levels.
CoStar Group’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 43.49%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
CoStar Group’s fourth-quarter performance is likely to have benefited from a robust portfolio of marketplaces, which includes Apartments.com, LoopNet and Homes.com.
The growing momentum within Apartments.com, marked by increased traffic and higher advertising expenditures, is expected to have contributed to CoStar Group’s top-line growth in the to-be-reported quarter. In the third quarter of 2024, Homes.com network traffic hit a record of 130 million unique visitors, a 17% increase year over year.
Homes.com continued to gain traction, with unique visitors reaching 85 million in the third quarter of 2024, a remarkable 38% year-over-year increase. This trend is expected to have boosted CoStar Group’s user engagement and revenue potential in the to-be-reported quarter.
CoStar Group introduced new features like the Owner module to further enhance user engagement. This module provides insights into real estate portfolios and it is expected to attract more users and boost customer engagement in the to-be-reported quarter.
The strengthening international segment and the positive outlook for real estate marketplaces are expected to have bolstered LoopNet’s performance in the to-be-reported quarter.
CoStar Group’s growth trajectory has likely been fueled by its consistent acquisition strategy. Notable acquisitions, such as Visual Lease to improve real estate management services and the OnTheMarket buyout to broaden its presence in the United Kingdom, have further contributed to the company's expansion.
The STR product, a benchmarking tool for the hospitality industry, is expected to have experienced strong revenue growth in the to-be-reported quarter.
However, the launch of Homes.com presents challenges, as sales teams are initially shifting their focus away from core products, resulting in reduced productivity. Additionally, persistent inflation and higher interest rates have been weighing on consumer confidence, and the challenging macroeconomic environment is expected to have negatively impacted CoStar Group’s results in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
CoStar Group has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Akamai Technologies AKAM, Autohome ATHM and Accenture ACN are some stocks with favorable combinations.
Akamai Technologies has an Earnings ESP of +0.09% and a Zacks Rank #2 at present. AKAM shares have plunged 19.2% in the trailing 12-month period. AKAM is set to report its fourth-quarter 2024 results on Feb. 20. You can see the complete list of today’s Zacks #1 Rank stocks here.
Autohome has an Earnings ESP of +7.27% and carries a Zacks Rank #2 at present. ATHM shares have rallied 10.6% in the trailing 12-month period. ATHM is slated to report its fourth-quarter 2024 results on Feb. 20.
Accenture has an Earnings ESP of +12.16% and a Zacks Rank #3 at present. ACN shares have gained 7.2% in the trailing 12-month period. ACN is scheduled to report its second-quarter fiscal 2025 results on Feb. 20.
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