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CoStar Group reported second quarter revenue of $606 million, up 13% over last year, but slightly lower than the consensus of $606.99M. Earnings per share beat consensus by a penny.
CoStar’s guidance for EPS topped expectations but, importantly, revenue guidance for the third quarter and full year trailed estimates.
CoStar said it sees third quarter revenue of $622M to $627M, lower than the consensus for revenue of $632M. For the year, the company guided for revenue of $2.45 billion to $2.46 billion, compared to the consensus of $2.48B.
“While the quarter had puts and takes …we do not see anything thesis-changing, so would be buyers on the weakness today,” said Keefe, Bruyette & Wood analysts.
Needham analysts agreed. Despite softer near-term trends, they remain constructive given the company’s leading competitive positioning, strong balance sheet, and long growth runway.
Shares of CoStar Group declined by over 8% following the report. So far this year, shares are higher by about 9%.
