Earnings Review and Free Research Report: CoStar’s Revenue Surged 16%; Earnings Soared 48%

Research Desk Line-up: Jones Lang LaSalle Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on CoStar Group, Inc. (NASDAQ: CSGP) (“CoStar”), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CSGP, following the Company’s release of its third quarter fiscal 2017 operating results on October 25, 2017. The leading provider of commercial real estate information, analytics, and online marketplaces outperformed top- and bottom-line expectations and also raised its full-year 2017 earnings and revenue guidance. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Property Management industry. Pro-TD has currently selected Jones Lang LaSalle Incorporated (NYSE: JLL) for due-diligence and potential coverage as the Company reported on November 06, 2017, its operating results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Jones Lang LaSalle when we publish it.

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Earnings Reviewed

For the quarter ended September 30, 2017, CoStar announced revenues of $247.53 million, reflecting an increase of 16% over revenues of $212.71 million in Q3 2016. The Company’s revenue numbers topped analysts’ estimates of $244.6 million.

CoStar’s earnings before interest, tax, depreciation, and amortization (EBITDA) surged 26% to $73 million on a y-o-y basis in Q3 2017. The Company’s adjusted EBITDA totaled $84 million for the reported quarter, representing an increase of 25% on a y-o-y basis. CoStar achieved an adjusted EBITDA margin of 34% in Q3 2017, up 1,100 basis points from 23% in Q2 2017.

CoStar’s net income increased to $34.18 million, or $1.04 per diluted share, for Q3 2017 compared to $23.20 million, or $0.72 per diluted share, in Q3 2016. The Company’s non-GAAP net income was $1.41 per diluted share for the reported quarter versus $1.11 per share in the prior year’s same quarter. CoStar’s earnings beat Wall Street’s estimates of $1.14 per share.

Operating Results

CoStar’s Company-wide net new bookings continued to be exceptionally strong at $34 million in Q3 2017, up 31% on a y-o-y basis. The Company achieved a revenue growth of 25% in the Multifamily segment at $72.26 million, while Commercial Property and Land segment’s revenue jumped 21% to $39.25 million in the reported quarter. During Q3 2017, CoStar’s Suite segment’s revenue accelerated 14% to $117.31 million, while Information Services segment’s revenue fell to $18.72 million compared to $19.49 million in the year-earlier comparable quarter.

Cash Matters

As of September 30, 2017, CoStar had approximately $633 million in cash, cash equivalents, and long-term investments, while short- and long-term debt outstanding, net of debt issuance costs, totaled approximately $305 million. Subsequent to the end of the reported quarter, the Company completed a public offering of common stock on October 03, 2017. The proceeds from the stock offering net of underwriting discounts and commissions totaled $833 million. In addition, the Company restructured its outstanding credit facility on October 19, 2017, by increasing the size of its revolving credit facility to $750 million, putting in place a new five-year term, and prepaying the outstanding term loan in full.

Outlook

For FY17, CoStar is forecasting revenues to be in the range of approximately $962 million to $965 million, increasing the midpoint of the revenue outlook by approximately $7 million. For Q4 2017, the Company expects revenues to be in the band of $251 million to $254 million.

For FY17, CoStar is estimating adjusted EBITDA to be in the range of $287 million to $291 million, an increase of $17 million at the midpoint from the previous outlook. For the upcoming quarter, the Company expects adjusted EBITDA in the range of $85 million to $89 million.

CoStar is projecting non-GAAP net income per diluted share in the range of approximately $4.65 to $4.73 for FY17. For Q4 2017, the Company expects non-GAAP net income per diluted share in the range of $1.31 to $1.38, which includes net dilution of $0.11 from the common stock offering and debt restructuring.

Based on preliminary estimates and assuming a close date at the end of November 2017, CoStar expects that ForRent will contribute $6 million to $8 million in revenues in Q4 2017, and be slightly dilutive on a non-GAAP net income per share basis due to the impact of integration and purchase accounting adjustments.

Stock Performance

CoStar Group’s share price finished yesterday’s trading session at $299.05, marginally up 0.88%. A total volume of 213.03 thousand shares have exchanged hands. The Company’s stock price skyrocketed 5.56% in the last three months, 19.23% in the past six months, and 54.58% in the previous twelve months. Additionally, the stock soared 58.66% since the start of the year. Shares of the Company have a PE ratio of 90.37 and currently have a market cap of $10.90 billion.

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