CoStar Group (CSGP) is gearing up to unveil its third-quarter 2024 earnings on Oct 22.
The company anticipates third-quarter revenues to fall within the range of $692 million to $697 million, showcasing an 11% growth year over year at the midpoint of the spectrum. Earnings are forecasted to range between 15 to 16 cents per share.
Throughout the past 30 days, the Zacks Consensus Estimate for third-quarter earnings has remained constant at 16 cents per share, marking a 46.67% dip from the previous year’s figures.
Stay updated on all quarterly releases: View the Zacks Earnings Calendar.
CoStar Group, Inc. Price and EPS Performance
For the third quarter, the Zacks Consensus Estimate for revenues is currently set at $696.45 million, indicating an 11.49% rise from the corresponding period in the prior year.
CoStar Group has surpassed the Zacks Consensus Estimate for earnings in all of the past four quarters, with an average surprise factor of 34.12%.
Let’s delve into the factors shaping up the upcoming financial disclosure.
Evaluating Influential Factors
CoStar Group’s performance in the third quarter is expected to benefit from a solid lineup of marketplaces including Apartments.com, LoopNet, and Homes.com.
The traction observed within Apartments.com, characterized by increased traffic and amplified advertising spends, is likely to have driven CoStar Group’s revenue growth in the imminent quarter.
The upward trend in Homes.com, marked by a substantial 197% year-over-year surge in unique visitors to 148 million in the second quarter of 2024, is anticipated to enhance CoStar Group’s user interaction and revenue opportunities in the upcoming quarter.
In the second quarter of 2024, CoStar Group rolled out new features like the Owner module to enrich user engagement, providing insights into real estate portfolios. This strategic move is projected to lure in more users and enhance customer involvement in the coming quarter.
The escalating success of the international segment and the optimistic outlook for real estate marketplaces are set to bolster LoopNet’s performance in the review period.
CoStar Group’s growth trajectory is likely being fueled by frequent acquisitions, with the OnTheMarket acquisition expected to uplift revenue growth in the U.K. residential market.
The STR product, serving as a benchmarking tool for the hospitality industry, is anticipated to demonstrate substantial revenue growth in the to-be-reported quarter.
CoStar Group’s enriched residential strategies, particularly focusing on Homes.com, are presumed to have spurred the top-line growth during the third quarter.
Nonetheless, persistent inflation and rising interest rates have dampened consumer sentiment, a scenario compounded by the challenging macroeconomic backdrop, likely impacting CoStar Group’s results in the next presentation.
Model Insights
Per the Zacks model, a combination of a favorable Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) amplifies the odds of an earnings outperformance. However, this is not the case currently.
CoStar Group holds an Earnings ESP of 0.00% and currently bears a Zacks Rank #1. Explore the top stocks to buy or sell before their release with our Earnings ESP Filter.
Promising Stocks for Consideration
Below are some companies worth considering, as our model indicates that they possess the rightful blend of elements for an earnings triumph in their upcoming financial disclosures:
Reddit (RDDT) displays an Earnings ESP of +72.10% and carries a Zacks Rank #2. Have a look at the complete list of today’s Zacks #1 Rank stocks here.
Carrier Global (CARR) exhibits an Earnings ESP of +1.18% with a Zacks Rank #2 presently.
Advanced Micro Devices (AMD) showcases an Earnings ESP of +0.22% alongside a Zacks Rank #3.
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