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CoStar Group (CSGP) to Post Q1 Earnings: What's in Store?

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CoStar Group (CSGP - Free Report) is slated to report first-quarter 2023 earnings on Apr 25.

CoStar expects revenues between $575 million and $580 million, indicating revenue growth of 12% year over year at the midpoint of the range.

For the first quarter, the Zacks Consensus Estimate for revenues currently stands at $578.96 million, suggesting growth of 12.24% from the year-ago quarter.

The consensus mark for earnings has remained unchanged at 25 cents per share over the past 30 days, indicating a decline of 19.35% from the year-ago quarter.

CoStar’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 20.2%.
 

CoStar Group, Inc. Price and EPS Surprise

CoStar Group, Inc. Price and EPS Surprise

CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote

 

Let’s see how things have shaped up for the upcoming announcement.

Factors to Note

CoStar’s first-quarter performance is likely to have suffered from the negative trends in the multifamily market. Supply has been outweighing demand, which does not bode well for CoStar’s top-line growth.

Apartments.com witnessed positive monthly rent growth in January and February. However, raging inflation, challenging macroeconomic conditions, and higher interest rates have been dampening consumer confidence, which is expected to hurt CoStar’s to-be-reported quarter results.

CoStar is expected to have witnessed a higher vacancy rate, thereby lower rent growth 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 has an Earnings ESP of 0.00% and currently carries a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Meta Platforms (META - Free Report) has an Earnings ESP of +7.78% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meta shares are up 78.9% year to date. META is set to report first-quarter 2023 results on Apr 26.

NETGEAR (NTGR - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank #2.

NETGEAR shares are down 4.2% year to date. NTGR is set to report first-quarter 2023 results on Apr 26.

Cloudflare (NET - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #2.

Cloudflare shares have gained 39.1% year to date. NET is set to report first-quarter 2023 results on Apr 27.


Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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