CoStar Group shares tumble 7% on earnings miss, weak guidance

Published 18/02/2025, 22:42
CoStar Group shares tumble 7% on earnings miss, weak guidance

ARLINGTON, Va. - CoStar Group , Inc. (NASDAQ:CSGP) saw its shares plunge 7.25% in after-hours trading on Tuesday after the real estate information and analytics provider reported fourth-quarter earnings that fell short of expectations and issued disappointing guidance for 2025.

The company reported adjusted earnings per share of $0.15 for Q4, missing analyst estimates of $0.22. Revenue came in at $709 million, slightly above the consensus forecast of $698.89 million and up 11% YoY.

For the full year 2024, CoStar Group generated revenue of $2.74 billion, an 11% increase from 2023. However, net income declined to $139 million from $375 million in the prior year.

Looking ahead, the company provided a weaker-than-expected outlook for 2025. CoStar Group forecasts full-year revenue between $2.985 billion and $3.015 billion, below analyst projections of $3.084 billion.

"CoStar Group delivered another strong year of profitable revenue growth in 2024," said Andy Florance, Founder and CEO. He highlighted that Apartments.com achieved $1.07 billion in revenue, growing 17% YoY, while the flagship CoStar offering generated $1.02 billion, up 10%.

Despite the earnings miss, Florance emphasized the company’s progress in the residential real estate market, stating that "In less than one year, the Homes.com Network has become the second largest residential real estate marketplace in the United States."

The company’s Board of Directors also approved a $500 million stock repurchase program, which has no time limit and can be discontinued at any time.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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