Headquartered in Arlington, Virginia, CoStar Group, Inc. (CSGP) provides information, analytics, and online marketplace services primarily to the commercial real estate industry. Valued at a market cap of $29.8 billion, the company’s wide array of digital service offerings includes a leasing marketplace, a selling marketplace, sales comparable information, decision support, contact management, tenant information, property marketing, and industry news. It is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, Apr. 29.

Prior to this event, analysts project this real estate information provider to report a profit of $0.06 per share, down 14.3% from $0.07 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street's earnings estimates in each of the last four quarters. Its earnings of $0.22 per share in the previous quarter, outpaced the consensus estimate by a notable margin of 29.4%.

For the full year, analysts expect CoStar to report EPS of $0.73, up 35.2% from $0.54 in fiscal 2024. Its EPS is expected to further grow 87.7% year over year to $1.37 in fiscal 2026. 

Shares of CSGP have fallen 20.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 1.4% loss, and the Real Estate Select Sector SPDR Fund’s (XLRE) 2.2% rise over the same time frame.

CoStar released its Q4 results on Feb. 18. Shares of the company surged 5% the following day as it delivered a better-than-expected performance. Its revenue of $709.4 million, surpassed consensus expectations. Moreover, compared to the previous year's quarter, its revenue advanced 10.8%, marking CoStar’s 55th consecutive quarter of double-digit revenue growth.

The strong top-line rise was driven by solid growth in its CoStar, multifamily, and residential segments. Notably, in less than a year, its Homes.com network became the second-largest residential real estate marketplace in the U.S., adding further momentum. However, despite the revenue growth, its Q4 adjusted EBITDA fell 14% year-over-year to $111.9 million, leading to a 38% decline in its net income to $59.8 million. 

Wall Street analysts are moderately optimistic about CSGP’s stock, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, nine recommend "Strong Buy," two suggest “Moderate Buy,” three advise “Hold,” and one gives a “Strong Sell” rating. The mean price target for CoStar is $85.69 which indicates an 18% potential upside from the current levels.