CoStar Group to Post Q1 Earnings: What's in Store for the Stock?

CoStar Group CSGP is slated to report its first-quarter 2025 earnings on April 29.

CoStar expects revenues between $711 million and $716 million, indicating growth of 9% year over year at the midpoint of the range. 

For the first quarter, the Zacks Consensus Estimate for revenues is currently pegged at $719.37 million, suggesting growth of 9.59% from the year-ago quarter’s levels. The consensus mark for earnings has remained unchanged at 11 cents per share in the past 30 days, suggesting 10% growth from the figure reported in the year-ago quarter.

CoStar Group’s earnings beat the Zacks Consensus Estimate in each the trailing four quarters, the average surprise being 47.26%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 first-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 advertising spending, is likely to have aided CoStar’s top-line growth in the to-be-reported quarter. 

CSGP has seen robust revenue growth across its major platform, Apartments.com, and expects 11% revenue growth for the first quarter of 2025.

Homes.com continued to gain traction, reaching 110 million average monthly unique visitors in the fourth quarter of 2024, up 11% year over year. Traffic to CoStar Group sites reached 134 million average monthly unique visitors in the fourth quarterof  2024, up 17% year over year. This momentum is expected to have continued in the to-be-reported quarter

The strengthening international segment and the positive outlook for real estate marketplaces are expected to have bolstered LoopNet’s performance in the to-be-reported quarter.

Acquisitions Boost CSGP’s Q1 Prospects

CoStar Group’s growth trajectory is likely to have been fueled by its consistent acquisition strategy. CoStar’s acquisition of Matterport represents a move toward integrating Matterport’s 3D capture technology into CSGP’s real estate marketplaces, therefore enhancing CoStar’s offerings and capitalizing on the growing demand for virtual real estate experiences.

The completion of CoStar’s acquisition of Visual Lease strengthens its Real Estate Manager business line, providing comprehensive lease management and accounting solutions for businesses across various sectors, which has further contributed to the company’s expansion.

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

What Our Model Says

As 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 #3. 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:

StoneCo STNE has an Earnings ESP of +13.79% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo shares have appreciated 68.5% year to date. STNE is set to report its first-quarter 2025 results on May 8.

Baidu BIDU currently has an Earnings ESP of +8.67% and a Zacks Rank #2.

Baidu shares are up 6.2% year to date. BIDU is slated to report its first-quarter 2025 results on May 21.

Qorvo QRVO presently has an Earnings ESP of +3.42% and a Zacks Rank #2.

Qorvo shares have plunged 9.1% year to date. QRVO is scheduled to report its fourth-quarter fiscal 2025 results on April 29.

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This article originally published on Zacks Investment Research (zacks.com).

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