CoStar Group (CSGP) to Post Q3 Earnings: What's in Store?
CoStar Group CSGP is slated to report its third-quarter 2023 earnings on Oct 24.
The company expects revenues between $622 million and $627 million, indicating growth of 12% year over year at the midpoint of the range. Earnings are expected between 29 and 30 cents per share.
For the third quarter, the Zacks Consensus Estimate for revenues currently stands at $625.27 million, suggesting growth of 12.27% from the year-ago quarter.
The consensus mark for earnings has remained unchanged at 30 cents per share over the past 30 days, unchanged year over year.
CoStar Group’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 14.02%.
CoStar Group, Inc. Price and EPS Surprise
CoStar Group, Inc. price-eps-surprise | CoStar Group, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
CoStar Group’s third-quarter performance is likely to have suffered from a challenging environment in both commercial and residential real estate. Supply has been outweighing demand, which does not bode well for its top-line growth.
Higher interest rates have been dampening consumer confidence, which, along with lower occupancy, is expected to hurt CoStar Group’s results in the to-be-reported quarter.
Apartments.com (multifamily) is expected to have witnessed revenue growth in the third quarter of 2023, driven by strong traffic and higher ad spending. It is also benefiting from the addition of the Homes.com rental area to its network and the tremendous growth in traffic to Homes.com.
Per the latest data from Apartments.com, the national vacancy rate moved up 10 basis points to 7%, the slowest increase since the vacancy rate began ascending at the end of 2021.
The Zacks Consensus Estimate for Costar Group’s third-quarter 2023 revenues is pegged at $234 million, indicating 2.2% sequential growth. The consensus mark for Loopnet is pegged at $66 million, flat year over year.
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 #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
GoDaddy GDDY has an Earnings ESP of +14.08% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have gained 1.6% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Pinterest PINS has an Earnings ESP of +4.76% and a Zacks Rank #1.
Pinterest shares have gained 21.5% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.
Cognizant CTSH has an Earnings ESP of +1.59% and a Zacks Rank #2.
Cognizant shares have gained 12.3% year to date. CTSH is set to report its third-quarter 2023 results on Nov 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
CoStar Group, Inc. (CSGP) : Free Stock Analysis Report
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
