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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 its first-quarter 2024 earnings on Apr 23.

The company expects revenues between $645 million and $650 million, indicating growth of 11% year over year at the midpoint of the range. Earnings are expected between 6 and 7 cents per share.

For the first quarter, the Zacks Consensus Estimate for revenues is currently pegged at $649.27 million, suggesting growth of 11.11% from the year-ago quarter’s levels.

The consensus mark for earnings has remained unchanged at 6 cents per share in the past 30 days.

CoStar Group, Inc. Price and EPS Surprise

 

CoStar Group, Inc. Price and EPS Surprise

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


CoStar Group’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.62%.

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

Factors to Note

CoStar Group’s first-quarter performance is likely to have benefited from a robust portfolio of marketplaces, which includes Apartments.com, LoopNet and Homes.com.

The growing momentum in Apartments.com, driven by increased traffic and higher ad spending, is likely to have aided CoStar's top-line growth. Per management’s guidance, Apartment.com is expected to witness 20% year-over-year growth in the first quarter.

The strengthening international segment and the positive outlook for real estate marketplaces are expected to have bolstered LoopNet's performance in the quarter under review. As per management guidance LoopNet is expected to have witnessed 8-9% year-over-year growth in the first quarter.

CoStar’s growth trajectory is likely to have been driven by frequent acquisitions. OnTheMarket buyout is expected to have driven revenue growth in the United Kingdom residential market. For the first quarter, it is expected to contribute $10 million in revenues.

The STR product, a benchmarking tool for the hospitality industry, is expected to have experienced strong double-digit revenue growth in the to-be-reported quarter.

CoStar Group's enhancing residential strategies, with a particular focus on Homes.com, are likely to have boosted the top line during the first quarter.

However, persistent inflation and higher interest rates have been dampening consumer confidence. This, along with a challenging macroeconomic environment, is expected to have hurt 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 #4 (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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Vertiv (VRT - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vertiv shares have gained 68.7% year to date. VRT is set to report its first-quarter 2024 results on Apr 24.

Meta Platforms (META - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank of #2 at present.

Meta Platforms shares have gained 41.8% year to date. META is set to report its first-quarter 2024 results on Apr 24.

MSCI (MSCI - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #3.

MSCI shares have declined 10.6% year to date. MSCI is set to report its first-quarter 2024 results on Apr 23.

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


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