CoStar Slashes Annual Forecast, Q3 Guidance Misses Big; Stock Tumbles 13%
CSGP is trading near its 52-week low of $26.68 (1.6% below the low).
Summary
CoStar cut its full-year revenue outlook to $3.72B-$3.76B from $3.78B-$3.82B and guided Q3 revenue to $935M-$945M, well below the $967.7M consensus. Adjusted EPS for Q3 is seen at $0.31-$0.34 versus the $0.38 estimate. The company is pivoting to cost-cutting, trimming its expense baseline by about $100 million, as a slow commercial real estate recovery and expensive residential expansion weigh on demand. This follows the Q2 earnings release earlier today that showed an 18% revenue jump and 817% net income surge, but the forward guidance is a sharp negative surprise. Shares fell 13.3% after hours, reflecting the magnitude of the miss. The aggressive push into residential marketplaces continues to pressure margins, and the lowered forecast signals management expects headwinds to persist.
At the time of this announcement, CSGP was trading at $26.26 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $26.68 to $97.43. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.