Latest news with #CSGP
Yahoo
6 days ago
- Business
- Yahoo
5 Insightful Analyst Questions From CoStar's Q1 Earnings Call
CoStar's first quarter results were met with a marked negative market reaction, as concerns emerged regarding the company's forward outlook despite solid operational performance. Management pointed to ongoing double-digit revenue growth, with CEO Andy Florance highlighting strong momentum in the core commercial real estate data and marketplace businesses and the integration of recent acquisitions such as Matterport. However, Florance acknowledged continued headwinds in the broader commercial real estate environment, describing conditions as 'one of the worst commercial real estate environments in decades,' with high office vacancies and weak transaction volumes. The company also experienced significant cost reductions, particularly in the business, and noted a sharp improvement in customer retention metrics following product repositioning. Is now the time to buy CSGP? Find out in our full research report (it's free). Revenue: $732.2 million vs analyst estimates of $730 million (11.5% year-on-year growth, in line) Adjusted EPS: $0.19 vs analyst estimates of $0.11 (81.7% beat) Adjusted EBITDA: $65.6 million vs analyst estimates of $30.51 million (9% margin, significant beat) Revenue Guidance for the full year is $3.14 billion at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the full year is $370 million at the midpoint, below analyst estimates of $389.9 million Operating Margin: -5.8%, in line with the same quarter last year Market Capitalization: $34.17 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Alexei Gogolev (JPMorgan) asked about the industry's response to Zillow's delayed market listing policy. CEO Andy Florance reported 'overwhelmingly negative' feedback from agents and positioned this as a competitive opportunity for Peter Christiansen (Citi) inquired about Matterport's integration timeline and monetization. Florance highlighted plans for deep product embedding and R&D expansion, while CFO Christian Lown emphasized expected reductions in customer cancellations as usage increases. George Tong (Goldman Sachs) questioned investment levels for and the impact of the Board's capital allocation committee. Lown confirmed investment plans remain unchanged, with cost savings being reallocated to sales force growth. Ryan Tomasello (KBW) asked about the deceleration in multifamily growth and the outlook for Lown explained that seasonal dynamics and new sales hires will drive acceleration in the second half, and the addition of experienced sales staff is expected to improve results. Stephen Sheldon (William Blair) queried the potential for more aggressive pricing in the CoStar Suite. Florance suggested that as market conditions improve, the company may pursue higher annual price increases, but will remain cautious if headwinds persist. Over the next few quarters, the StockStory team will focus on (1) the pace of sales force expansion and its impact on net new bookings, (2) the effectiveness of Matterport's integration in driving higher engagement and retention across the product suite, and (3) signs of improvement in commercial real estate transaction volumes and office vacancy rates. Execution on cost control and the ability to successfully monetize new product offerings will also be key indicators of progress. CoStar currently trades at $81, down from $82.61 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
6 days ago
- Business
- Yahoo
Data & Business Process Services Stocks Q1 In Review: CoStar (NASDAQ:CSGP) Vs Peers
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how data & business process services stocks fared in Q1, starting with CoStar (NASDAQ:CSGP). A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area. The 11 data & business process services stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 9.1% on average since the latest earnings results. With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K. CoStar reported revenues of $732.2 million, up 11.5% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts' EPS estimates and revenue guidance for next quarter meeting analysts' expectations. CoStar delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 1.9% since reporting and currently trades at $81. Is now the time to buy CoStar? Access our full analysis of the earnings results here, it's free. Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services. CSG reported revenues of $299.5 million, up 1.5% year on year, outperforming analysts' expectations by 1.4%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' EPS estimates. CSG scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $64. Is now the time to buy CSG? Access our full analysis of the earnings results here, it's free. Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies. Broadridge reported revenues of $1.81 billion, up 4.9% year on year, falling short of analysts' expectations by 2.5%. It was a slower quarter, leaving some shareholders looking for more. Broadridge delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $241.80. Read our full analysis of Broadridge's results here. Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions. Verisk reported revenues of $753 million, up 7% year on year. This print was in line with analysts' expectations. More broadly, it was a mixed quarter as it also recorded a narrow beat of analysts' constant currency revenue estimates but a slight miss of analysts' full-year EPS guidance estimates. The stock is up 9.9% since reporting and currently trades at $325.42. Read our full, actionable report on Verisk here, it's free. Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change. Planet Labs reported revenues of $66.27 million, up 9.6% year on year. This result beat analysts' expectations by 6.5%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts' EPS estimates and full-year revenue guidance slightly topping analysts' expectations. Planet Labs achieved the biggest analyst estimates beat among its peers. The stock is up 38.4% since reporting and currently trades at $5.55. Read our full, actionable report on Planet Labs here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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Yahoo
02-06-2025
- Business
- Yahoo
1 S&P 500 Stock to Keep an Eye On and 2 to Keep Off Your Radar
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition. Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle. Market Cap: $10.12 billion With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Why Do We Steer Clear of SWK? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Incremental sales over the last five years were much less profitable as its earnings per share fell by 11% annually while its revenue grew Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.7 percentage points Stanley Black & Decker is trading at $65.51 per share, or 12.2x forward P/E. Check out our free in-depth research report to learn more about why SWK doesn't pass our bar. Market Cap: $31.03 billion With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K. Why Does CSGP Fall Short? Efficiency has decreased over the last five years as its adjusted operating margin fell by 23.6 percentage points Earnings per share fell by 4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 23.7 percentage points At $72.82 per share, CoStar trades at 69.2x forward P/E. Read our free research report to see why you should think twice about including CSGP in your portfolio, it's free. Market Cap: $25.66 billion Started as a mail-order tractor parts business, Tractor Supply (NASDAQ:TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer. Why Are We Positive On TSCO? Rapidly increasing store base reflects a desire to sell in new markets and scale quickly Estimated revenue growth of 5.6% for the next 12 months implies its momentum over the last six years will continue Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures Tractor Supply's stock price of $48.63 implies a valuation ratio of 21.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
23-05-2025
- Business
- Yahoo
Was Jim Cramer Right About CoStar Group, Inc. (CSGP)?
We recently published a list of . In this article, we are going to take a look at where CoStar Group, Inc. (NASDAQ:CSGP) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 15, a caller asked whether to hold on to Matterport after suffering major losses. The stock was acquired in 2025 by CoStar Group, Inc. (NASDAQ:CSGP). At the time however, Cramer was direct and advised moving on, saying: 'Yeah, it's done. No — it got a bid. It's done. Just — let's leave it behind and start thinking going forward. We just think going forward, okay?' An elegant residential building set against the modern skyline. Advising to move on was the right move — Matterport's struggles continued, with CoStar down 12.64%. CoStar Group, Inc. (NASDAQ:CSGP) has become a dominant force in digital real estate data, capitalizing on industry consolidation and analytics demand. Overall, CSGP ranks 6th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CSGP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSGP and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-05-2025
- Business
- Yahoo
Why CoStar Group, Inc. (CSGP) Went Down On Wednesday
We recently published a list of . In this article, we are going to take a look at where CoStar Group, Inc. (NASDAQ:CSGP) stands against other worst-performing stocks on Wednesday. A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy's contraction in the first quarter of the year, triggering fears of recession. Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent. Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year. In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. An elegant residential building set against the modern skyline. CoStar Group saw its share prices fall by 10.31 percent on Wednesday to finish at $74.17 apiece as investor sentiment was weighed down by a dismal earnings performance in the first quarter of the year. In its latest earnings release, CoStar Group, Inc. (NASDAQ:CSGP) said it swung to a net loss of $14.8 million from a $6.7 million net income in the same period a year earlier, despite revenues jumping by 11 percent to $732.2 million from $656.4 million year-on-year. The company said its net loss included a $31-million negative impact associated with its acquisition of Matterport. Looking ahead, CoStar Group, Inc. (NASDAQ:CSGP) said it expects revenues to settle between $3.115 billion and $3.155 billion for the full year 2025, representing revenue growth of approximately 15 percent year-on-year at the midpoint of the range. The company also expects the second quarter to grow by 14 percent to a range of $770 million to $775 million. Overall, CSGP ranks 3rd on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of CSGP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CSGP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
