CoStar lowers full-year revenue outlook, shares fall

Earnings
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CoStar Group shares declined. After the previous day's close, the company reported second-quarter results with revenue missing expectations and lowered its full-year revenue outlook. Second-quarter revenue came in at 925 million dollars, falling short of the 929 million dollar estimate, and the full-year forecast was cut to a range of 3.72 to 3.76 billion dollars from the prior 3.78 to 3.82 billion dollars. The third-quarter revenue outlook of 935 to 945 million dollars also missed the 968 million dollar consensus. Meanwhile, adjusted EBITDA for the second quarter was 184 million dollars, beating the 174 million dollar estimate, and the full-year profit outlook was maintained. Management cited the restructuring of the Ten-X business and a revamp of the Homes.com sales organization as reasons, while delays in monetizing Homes.com, skepticism about the real estate marketplace business in the AI era, the CFO's departure, and uncertainty around resuming M&A also weighed on the stock.

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