Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
In addition to the revised financial outlook, CoStar’s Chief Financial Officer and Investor Relations will be participating in Citi’s upcoming Technology, Media, and Telecommunications (TMT) Conference, set to take place in London on March 12th. This event will provide an opportunity for further insights into CoStar’s financial strategies and market position as a prominent player in the Real Estate Management & Development industry. The company’s next earnings report is scheduled for April 29, 2025, where investors will be able to track the progress of its growth initiatives and segment performance.
Christiansen’s commentary highlighted a mix of factors influencing the revised outlook, including a more conservative projection for the company’s Homes segment, a steady progression in the Suite segment, and a sharper than anticipated deceleration in the Apartments segment. According to InvestingPro data, CoStar maintains a strong financial position with more cash than debt and excellent liquidity, with current assets significantly exceeding short-term obligations. The analyst noted the importance of salesforce additions for fiscal year 2025 across most of CoStar’s segments. Particularly within the Apartments segment, there is an interest in the sales cycles of small versus large properties as a means to bridge the revenue gap and enhance overall representative productivity.
The reduction in CoStar’s price target reflects a modestly lower commercial real estate (CRE) multiple in the sum-of-the-parts valuation. This adjustment accounts for the potential changes in growth algorithms for the Apartments segment. Based on InvestingPro’s comprehensive analysis, the stock appears to be trading above its Fair Value, with notably high P/E and EBITDA multiples. Nonetheless, Christiansen has maintained a Buy rating, citing improving trends in the CRE cycle and a likely de-risked outlook. This stance comes even as CoStar’s stock experienced a roughly 4% decline in after-hours trading following the earnings announcement. For deeper insights into CoStar’s valuation and 12+ key financial metrics, investors can access the detailed Pro Research Report available on InvestingPro.
In addition to the revised financial outlook, CoStar’s Chief Financial Officer and Investor Relations will be participating in Citi’s upcoming Technology, Media, and Telecommunications (TMT) Conference, set to take place in London on March 12th. This event will provide an opportunity for further insights into CoStar’s financial strategies and market position as a prominent player in the Real Estate Management & Development industry. The company’s next earnings report is scheduled for April 29, 2025, where investors will be able to track the progress of its growth initiatives and segment performance.
In other recent news, CoStar Group (NASDAQ:CSGP) reported fourth-quarter earnings that did not meet expectations, with adjusted earnings per share at $0.15, falling short of the analyst estimate of $0.22. Revenue for the quarter was $709 million, slightly exceeding the consensus forecast of $698.89 million and marking an 11% year-over-year increase. For the full year 2024, CoStar Group achieved revenue of $2.74 billion, also up 11% from the previous year, although net income declined significantly to $139 million from $375 million. Looking ahead, the company provided a weaker-than-expected revenue forecast for 2025, estimating between $2.985 billion and $3.015 billion, compared to analyst projections of $3.084 billion. Despite these challenges, CoStar’s Apartments.com platform reported a 17% revenue growth to $1.07 billion, and the CoStar Suite generated $1.02 billion, up 10%. CoStar’s Board of Directors approved a $500 million stock repurchase program, which can be discontinued at any time. Analyst Nicholas Jones from Citizens JMP recently adjusted the price target for CoStar Group to $85 from $90, maintaining a Market Outperform rating, following the company’s guidance release that did not meet expectations. The company’s ongoing sales hiring initiatives are expected to contribute to future revenue growth, although the Residential segment is currently impacting the share price negatively.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.