On July 29, CoStar fell 11.01% in regular trading, trading at $27.685/share, with turnover of $64.53 million. The decline was triggered by the company's Q2 earnings report and disappointing forward guidance.

CoStar reported Q2 adjusted EPS of $0.32, beating the consensus estimate of $0.29 by 10.3%, with net income surging 817% year-over-year and adjusted EBITDA doubling. However, revenue of $925 million fell short of the $928.8 million estimate. More critically, Q3 guidance of $935M-$945M in revenue significantly trailed the $967.5M consensus, while Q3 EPS guidance of $0.31-$0.34 came in well below the $0.38 Street estimate. Full-year revenue outlook was revised to $3.72B-$3.76B versus the $3.80B consensus.

The weak guidance compounded selling pressure as the stock had rallied over 10% in the prior two sessions on pre-earnings optimism. Analyst reactions were swift: Keefe Bruyette & Woods downgraded to Market Perform with a $29 target, while Goldman Sachs cut its target to $40 from $46. The sluggish commercial real estate recovery amid elevated borrowing costs continues to weigh on demand for CoStar's core data and analytics services.

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