Shares of CoStar Group (NASDAQ: CSGP) climbed 17.1% last month, according to data provided by S&P Global Market Intelligence, after the real estate information provider delivered a strong fourth-quarter report and issued upbeat guidance for the year ahead.
CoStar Group's fourth-quarter revenue jumped 24% to $316 million. Profit growth was even more impressive: Net income surged 89% to $84 million, while adjusted net income soared 126% to $102 million.
CoStar is enjoying solid growth across all of its major business segments. Its CoStar Suite information product saw revenue rise 16% to $142 million. Meanwhile, sales in its multifamily marketplace business leapt 44% to $109 million, driven by the strong growth of Apartments.com.
Additionally, CEO Andrew Florance said during a conference call with analysts that the company believes it can more than triple revenue at its LoopNet commercial real estate marketplace in the coming years.
Image source: Getty Images.
CoStar Group expects companywide revenue to rise another 15% to approximately $1.38 billion in 2019. Management is also guiding for adjusted earnings to increase by as much as 21% to $10 per share.
Looking even further ahead, Florance said that CoStar Group is targeting a $3 billion revenue run rate by the end of 2023. That would represent a near-tripling of the $1.2 billion in revenue the company generated in 2018.
All told, CoStar Group's shares are now up almost 35% so far in 2019, but if Florance and his team can deliver on their aggressive growth targets, more gains could still lie ahead for investors.
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