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CoStar Group (CSGP) Q4 Earnings & Revenues Top Estimates
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CoStar Group (CSGP - Free Report) reported fourth-quarter 2020 non-GAAP diluted earnings of $2.85 per share that beat the Zacks Consensus Estimate by 17.8%. Moreover, the figure inched up 1.1% on a year-over-year basis.
Revenues of $444.4 million outpaced the Zacks Consensus Estimate by 2.4% and increased 19% year over year.
North America revenues were $429.4 million, up 18.5% year over year. Moreover, international revenues were $15 million, up 22.6% year over year.
Markedly, CoStar witnessed a 29% increase in unique visitors on its platforms in the quarter under review. The growth in traffic was driven by increased real estate buying online due to the ongoing pandemic and need for social distancing.
CoStar Group, Inc. Price, Consensus and EPS Surprise
In the past year, the company’s stock has returned 24.2% compared with the industry’s surge of 51.4%.
Quarter in Details
For the fourth quarter, Information and analytics revenues were $202.7 million, up 6.4% year over year.
For the reported quarter, CoStar Suite revenues increased 4.6% year over year to $168.4 million. Information services revenues surged 15.8% from the year-ago quarter’s levels to $34 million.
Online Marketplaces revenues increased 31.3% year over year to $241.7 million. Multi-family revenues increased 23.2% year over year to $160.4 million. Commercial property and land revenues were $81.3 million, up 50.7%.
Apartments.com increased 23% and LoopNet rose 20% year over year in the fourth quarter.
Further, LoopNet attracted nearly 9.4 million average monthly unique visitors in the fourth quarter, up 37% year over year.
Operating Details
Gross margin expanded 240 basis points (bps) on a year-over-year basis to 82.4%.
Adjusted EBITDA for the fourth quarter was $166.8 million compared with $141.8 million reported in the year-ago quarter.
Selling and marketing expenses (excluding customer base amortization), as a percentage of revenues, increased 350 bps from the year-ago quarter’s levels to 30.1%.
General and administrative expenses, as a percentage of revenues, increased to 26.6% compared with 13.6% reported in the year-ago quarter.
Operating margin for the fourth quarter came in at 12.4% against 26.9% reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2020, CoStar’s cash and cash equivalents and restricted cash were $3.76 billion compared with $3.87 billion as of Sep 30.
CoStar had long-term debt of $986.7 million as of Dec 31, 2020 compared with $986.4 million as of Sep 30.
2020 Numbers in Details
CoStar reported revenues of $1.659 billion in 2020, up 19% over 2019 tally. The Zacks Consensus Estimate was pegged at $1.65 billion.
Non-GAAP earnings came in at $9.91 per share against earnings of $10.19 per share reported in 2019. The Zacks Consensus Estimate was pegged at earnings of $9.46 per share.
Moreover, in 2020 Apartments.com attracted more than 1 billion network visits, up 20% year over year.
For 2020, CoStar’s adjusted EBITDA came in at $553.2 million compared with $506.7 million reported in 2019.
In 2020, CoStar generated cash flow from operations of $486.1 million compared with $457.8 million in the previous year.
Guidance
For the first quarter of 2021, revenues are expected between $450 million and $455 million, suggesting growth of 15% year over year at mid-point. The Zacks Consensus Estimate for revenues is currently pegged at $448.3 million.
Adjusted EBITDA is expected in the range of $140-$145 million.
Non-GAAP diluted earnings are expected between $2.33 and $2.43 per share. The consensus mark for the first quarter is pegged at $2.67 per share.
CoStar currently expects revenues between $1.925 billion and $1.945 billion for 2021, representing year-over-year growth of 17% at midpoint. The guidance is inclusive of $50 million expected revenue contribution from Homesnap.
The Zacks Consensus Estimate for revenues is currently pegged at $1.89 billion for 2021.
Adjusted EBITDA is expected in the range of $640-$650 million for 2021.
Non-GAAP diluted earnings are expected between $10.83 and $11.03 per share. The Zacks Consensus Estimate is pegged at $11.32 per share.
HP Inc and Workday are scheduled to release earnings on Feb 25, while CrowdStrike is slated to announce results on Mar 16.
Long-term earnings growth rate for HP, CrowdStrike and Workday are currently pegged at 5.4%, 25%, and 25.4%, respectively.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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CoStar Group (CSGP) Q4 Earnings & Revenues Top Estimates
CoStar Group (CSGP - Free Report) reported fourth-quarter 2020 non-GAAP diluted earnings of $2.85 per share that beat the Zacks Consensus Estimate by 17.8%. Moreover, the figure inched up 1.1% on a year-over-year basis.
Revenues of $444.4 million outpaced the Zacks Consensus Estimate by 2.4% and increased 19% year over year.
North America revenues were $429.4 million, up 18.5% year over year. Moreover, international revenues were $15 million, up 22.6% year over year.
Markedly, CoStar witnessed a 29% increase in unique visitors on its platforms in the quarter under review. The growth in traffic was driven by increased real estate buying online due to the ongoing pandemic and need for social distancing.
CoStar Group, Inc. Price, Consensus and EPS Surprise
CoStar Group, Inc. price-consensus-eps-surprise-chart | CoStar Group, Inc. Quote
In the past year, the company’s stock has returned 24.2% compared with the industry’s surge of 51.4%.
Quarter in Details
For the fourth quarter, Information and analytics revenues were $202.7 million, up 6.4% year over year.
For the reported quarter, CoStar Suite revenues increased 4.6% year over year to $168.4 million. Information services revenues surged 15.8% from the year-ago quarter’s levels to $34 million.
Online Marketplaces revenues increased 31.3% year over year to $241.7 million. Multi-family revenues increased 23.2% year over year to $160.4 million. Commercial property and land revenues were $81.3 million, up 50.7%.
Apartments.com increased 23% and LoopNet rose 20% year over year in the fourth quarter.
Further, LoopNet attracted nearly 9.4 million average monthly unique visitors in the fourth quarter, up 37% year over year.
Operating Details
Gross margin expanded 240 basis points (bps) on a year-over-year basis to 82.4%.
Adjusted EBITDA for the fourth quarter was $166.8 million compared with $141.8 million reported in the year-ago quarter.
Selling and marketing expenses (excluding customer base amortization), as a percentage of revenues, increased 350 bps from the year-ago quarter’s levels to 30.1%.
General and administrative expenses, as a percentage of revenues, increased to 26.6% compared with 13.6% reported in the year-ago quarter.
Operating margin for the fourth quarter came in at 12.4% against 26.9% reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2020, CoStar’s cash and cash equivalents and restricted cash were $3.76 billion compared with $3.87 billion as of Sep 30.
CoStar had long-term debt of $986.7 million as of Dec 31, 2020 compared with $986.4 million as of Sep 30.
2020 Numbers in Details
CoStar reported revenues of $1.659 billion in 2020, up 19% over 2019 tally. The Zacks Consensus Estimate was pegged at $1.65 billion.
Non-GAAP earnings came in at $9.91 per share against earnings of $10.19 per share reported in 2019. The Zacks Consensus Estimate was pegged at earnings of $9.46 per share.
Moreover, in 2020 Apartments.com attracted more than 1 billion network visits, up 20% year over year.
For 2020, CoStar’s adjusted EBITDA came in at $553.2 million compared with $506.7 million reported in 2019.
In 2020, CoStar generated cash flow from operations of $486.1 million compared with $457.8 million in the previous year.
Guidance
For the first quarter of 2021, revenues are expected between $450 million and $455 million, suggesting growth of 15% year over year at mid-point. The Zacks Consensus Estimate for revenues is currently pegged at $448.3 million.
Adjusted EBITDA is expected in the range of $140-$145 million.
Non-GAAP diluted earnings are expected between $2.33 and $2.43 per share. The consensus mark for the first quarter is pegged at $2.67 per share.
CoStar currently expects revenues between $1.925 billion and $1.945 billion for 2021, representing year-over-year growth of 17% at midpoint. The guidance is inclusive of $50 million expected revenue contribution from Homesnap.
The Zacks Consensus Estimate for revenues is currently pegged at $1.89 billion for 2021.
Adjusted EBITDA is expected in the range of $640-$650 million for 2021.
Non-GAAP diluted earnings are expected between $10.83 and $11.03 per share. The Zacks Consensus Estimate is pegged at $11.32 per share.
Zacks Rank & Stocks to Consider
Currently, CoStar carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are HP Inc (HPQ - Free Report) , CrowdStrike (CRWD - Free Report) and Workday (WDAY - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
HP Inc and Workday are scheduled to release earnings on Feb 25, while CrowdStrike is slated to announce results on Mar 16.
Long-term earnings growth rate for HP, CrowdStrike and Workday are currently pegged at 5.4%, 25%, and 25.4%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>