CoStar Group Inc tumbled more than 9% in extended trading after the company’s third-quarter revenue fell short of expectations.
The commercial real estate information company posted revenue of $625 million, up 12% year-over-year but short of Street expectations of $625.7 million.
Adjusted earnings were $0.30 per share, flat year-over-year and in line with expectations.
Looking ahead, CoStar expects fourth-quarter earnings between $0.31 and $0.32 per share and full-year earnings between $1.21 and $1.22 per share. Full-year revenue was guided to a range of $2.44 billion to $2.45 billion.
“CoStar Group delivered strong results this quarter on our two principal fronts,” CEO Andy Florance said in a statement. “First, our commercial information and marketplace businesses are fortress strong in a turbulent market with revenue growing 14% year-over-year and margins approaching 40%.
“On the second front, we are investing aggressively, but prudently, in Homes.com with the goal of unlocking the enormous potential of becoming the leading, successful US residential real estate portal. In September we celebrated a major milestone on that road to success with 100 million unique visitors to Homes.com,” he added.
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