CoStar (CSGP) reports Q3: everything you need to know ahead of earnings
Real estate data provider CoStar Group (NASDAQ:CSGP) will be reporting results this Tuesday afternoon. Here’s what to look for.
CoStar met analysts’ revenue expectations last quarter, reporting revenues of $925 million, up 18.4% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations and full-year EPS guidance in line with analysts’ estimates.
Is CoStar a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CoStar’s revenue to grow 13.4% year on year, slowing from the 20.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. CoStar has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at CoStar’s peers in the professional services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. SS&C delivered year-on-year revenue growth of 7.8%, meeting analysts’ expectations, and Equifax reported revenues up 9.6%, in line with consensus estimates. SS&C traded down 7.3% following the results while Equifax was up 10.7%.
Read our full analysis of SS&C’s results here and Equifax’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 3.7% on average over the last month. CoStar is up 24.1% during the same time and is heading into earnings with an average analyst price target of $37.65 (compared to the current share price of $33.54).
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