CoStar Poised to Beat Q3 Adjusted EPS Estimates, Raise Full-Year Adjusted EBITDA and Margin Guidance, RBC Says

MT Newswires Live10-16

CoStar (CSGP) is expected to deliver a beat on Q3 adjusted EPS and adjusted EBITDA, and RBC expects the company to raise its full-year adjusted EBITDA and margin guidance because of lower spending while maintaining its revenue outlook, excluding Zonda, RBC Capital Markets said in a Friday note.

RBC expects quarterly adjusted EPS of $0.35 and adjusted EBITDA of $211 million, compared with consensus of $0.34 and $206 million.

Q3 revenue is estimated to be $954 million versus consensus of $946 million, while net new bookings are expected to be $62 million compared with consensus of $72 million, according to the note.

On the residential side, the higher mortgage rate environment remains a headwind, RBC said, adding that the company has scaled back the Homes.com sales force to focus on driving tenure and productivity.

CoStar is scheduled to report its Q3 results on Oct. 27.

RBC maintained its Sector Perform rating with a $34 price target.

Price: 31.98, Change: -0.02, Percent Change: -0.06

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