CoStar Group to Post Q2 Earnings: What's in Store for the Stock?

CoStar Group CSGP is slated to report second-quarter 2025 earnings on July 22.The company expects revenues to be between $770 million and $775 million, indicating year-over-year growth of 14% at the midpoint of the range. The Zacks Consensus Estimate for revenues is currently pegged at $771.67 million, suggesting growth of 13.85% from the year-ago quarter’s levels. The consensus mark for earnings has remained unchanged at 14 cents per share in the past 30 days, suggesting a 6.67% decline from the figure reported in the year-ago quarter.CoStar Group’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 37.41%. (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. QuoteLet’s see how things might have shaped up for CSGP prior to the announcement.Factors to NoteCoStar Group’s second-quarter performance is likely to have benefited from a robust portfolio of marketplaces, including 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 10% revenue growth for the second quarter of 2025.Homes.com continued to gain traction, reaching 104 million average monthly unique visitors in the first quarter of 2025, according to Google Analytics. Also, Traffic to CoStar Group sites reached 130 million average monthly unique visitors during the quarter. This momentum is expected to have continued in the to-be-reported period.The strengthening international segment and its highest net new bookings in nearly three years, driven by its revamped sales strategy focusing on broad subscription packages, are expected to have bolstered LoopNet’s performance in the to-be-reported quarter. LoopNet’s revenue growth rate is anticipated to be 7% in the second quarter.However, challenging macroeconomic uncertainties and ongoing headwinds in the commercial real estate market are expected to have affected revenue growth. The Homes.com segment is also anticipated to have experienced low single-digit revenue growth in the second quarter of 2025 due to the impact of first-quarter cancellations.Acquisitions Boost CSGP’s Q2 ProspectsCoStar Group’s growth trajectory is likely to have been fueled by its consistent acquisition strategy. Its acquisition of Matterport represents a move toward integrating Matterport’s 3D capture technology into CSGP’s real estate marketplaces, thereby enhancing CoStar’s offerings and capitalizing on the growing demand for virtual real estate experiences.Matterport is expected to have contributed approximately $40 million to second-quarter revenues, with plans to integrate its technology into CoStar’s platforms, enhancing user engagement and reducing cancellations.What Our Model SaysAs 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 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 ConsiderHere 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:Lam Research LRCX, Sensata Technologies ST and Infosys INFY are some stocks with favorable combinations.Lam Reasearch has an Earnings ESP of +1.87% and a Zacks Rank #2 at present. Lam Research is slated to report fourth-quarter fiscal 2025 results on July 30. You can see the complete list of today’s Zacks #1 Rank stocks here.Sensata Technologies has an Earnings ESP of +1.45% and a Zacks Rank #2 at present. Sensata Technologies is set to report second-quarter 2025 results on July 29. Infosys has an Earnings ESP of +1.06% and a Zacks Rank #2 at present. 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(INFY): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report CoStar Group, Inc. (CSGP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks