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Market Overview

Preview: CoStar Group's Earnings

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CoStar Group (NASDAQ:CSGP) releases its next round of earnings this Tuesday, February 23. Here is Benzinga's essential guide to CoStar Group's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see CoStar Group reporting earnings of $2.41 per share on sales of $434.22 million. CoStar Group reported a per-share profit of $2.82 when it published results during the same quarter last year. Sales in that period totaled $374.73 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 14.54%. Sales would be up 15.88% on a year-over-year basis. CoStar Group's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 2.07 2 2.27 2.62
EPS Actual 2.26 2.34 2.44 2.82
Revenue Estimate 417.43 M 390.15 M 387.42 M 364.35 M
Revenue Actual 425.62 M 397.16 M 391.85 M 374.73 M

Stock Performance

For a full 12 months, the return has risen by 29.07%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. CoStar Group is scheduled to hold the call at 17:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings