These Analysts Cut Their Forecasts On CoStar Group After Q4 Results

CoStar Group, Inc. CSGP reported upbeat earnings for its fourth quarter, but issued weak guidance on Tuesday.

CoStar posted quarterly earnings of 33 cents per share, beating market estimates of 32 cents per share. The company’s quarterly sales came in at $640.10 million versus expectations of $634.25 million, according to data from Benzinga Pro.

CoStar Group said it sees first-quarter earnings of 6 cents to 7 cents per share, versus market estimates of 29 cents per share. The company expects revenue of $645 million to $650 million versus expectations of $652.94 million.

The company expects FY24 EPS of 57 cents to 60 cents on revenue of $2.75 billion to $2.77 billion.

"Once again CoStar Group delivered exceptional results in our commercial information and marketplace businesses1 for the full year 2023, while at the same time devoting major time and resources towards launching the new Homes.com," said Andy Florance, Founder and Chief Executive Officer of CoStar Group. "Our commercial information and marketplace businesses grew revenue by 14% in 2023 in the worst commercial real estate market in decades and delivered 40% profit margins in 2023, our highest profit levels ever. For the full year of 2023, we generated strong net new bookings totaling $286 million."

CoStar shares gained 2.2% to trade at $83.00 on Wednesday.

These analysts made changes to their price targets on CoStar Group after the company reported quarterly results.

• Needham cut the price target on CoStar Group from $105 to $90. Needham analyst Mayank Tandon maintained a Buy rating.
• JMP Securities slashed the price target on CoStar Group from $90 to $85. JMP Securities analyst Nicholas Jones maintained a Market Outperform rating.
• RBC Capital analyst Ashish Sabadra, meanwhile, reiterated CoStar with an Outperform and maintained a $95 price target.

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