Stock Track | CoStar Plunges 5% in After-Hours Trading on Weak Q2 Revenue Guidance Amid Uncertain Commercial Property Outlook

Stock Track04-29 05:03

CoStar Group's stock plummeted 5.03% in after-hours trading following the release of its first-quarter earnings report and second-quarter guidance that fell short of analyst expectations.

The commercial real estate data provider forecast second-quarter revenue in the range of $922 million to $932 million, the midpoint of which is below analysts' average estimate of $931 million. The company cited continued uncertainty in the commercial property market due to higher borrowing costs and post-pandemic hybrid work trends, which have dampened transaction volumes and weighed on demand for CoStar's core data and analytics suite.

While CoStar reported better-than-expected adjusted earnings of 23 cents per share for the first quarter, compared to estimates of 18 cents per share, and revenue of $897 million that was in line with expectations, investors focused on the cautious outlook for the current quarter. The company also reaffirmed its annual revenue forecast but raised its adjusted EBITDA guidance for the full year.

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