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CoStar Group (CSGP) to Post Q4 Earnings: What's in Store?

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CoStar Group (CSGP - Free Report) is slated to report its fourth-quarter 2023 earnings on Feb 20.

The company expects revenues between $630 million and $635 million, indicating growth of 12% year over year at the midpoint of the range. Earnings are expected between 31 and 32 cents per share.

For the fourth quarter, the Zacks Consensus Estimate for revenues currently stands at $633.30 million, suggesting growth of 10.46% from the year-ago quarter’s levels.

The consensus mark for earnings has remained unchanged at 32 cents per share in the past 30 days, unchanged year over year.

CoStar Group, Inc. Price and EPS Surprise

 

CoStar Group, Inc. Price and EPS Surprise

CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote


CoStar Group’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 7.77%.

Let’s see how things have shaped up for the upcoming announcement.

Factors to Note

CoStar Group’s fourth-quarter performance is likely to have benefited from a robust portfolio of marketplaces, which includes Apartments.com, LoopNet and Homes.com.

The growing momentum in Apartments.com, driven by increased traffic and higher ad spending, is likely to have aided CoStar's top-line growth.

The strengthening international segment and the positive outlook for real estate marketplaces are expected to have bolstered LoopNet's performance in the quarter under review. Notably, LoopNet is expected to witness an 11% year-over-year growth in the fourth quarter.

The STR product, a benchmarking tool for the hospitality industry, is expected to have experienced strong double-digit revenue growth in the to-be-reported quarter.

CoStar Group's enhancing residential strategies, with a particular focus on Homes.com, are likely to have boosted growth during the fourth quarter.

However, higher interest rates dampening consumer confidence and lower occupancy are expected to have hurt CoStar Group’s results in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

CoStar Group has an Earnings ESP of 0.00% and currently carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Inseego (INSG - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inseego shares have gained 64.2% year to date. INSG is set to report its fourth-quarter 2023 results on Feb 21.

Vertiv (VRT - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank of #2 at present.

Vertiv shares have gained 30.8% year to date. VRT is set to report its fourth-quarter 2023 results on Feb 21.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #2.

NVIDIA shares have gained 46.7% year to date. NVDA is set to report its fourth-quarter fiscal 2024 results on Feb 21.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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