CoStar trims annual revenue forecast on dour property demand
Oct 22 (Reuters) -Real estate information provider CoStar Group CSGP.O trimmed its annual revenue forecast on Tuesday as inflation-wary consumers reconsider property purchases, sending its shares down 3.8% in extended trading.
Surging interest rates and persistent inflation have distressed the property market, reducing affordability for many home buyers and causing consumers to spend less on property purchases.
The Washington, D.C.-based companyrevised its annual revenue forecast to between $2.72 billion and $2.73 billion, down from its prior expectations of $2.74 billion to $2.75 billion.
Analysts, on average, expected annual revenue of $2.75 billion, according to data compiled by LSEG
The Apartments.com owner expects fourth-quarter revenue between $693 million and $703 million, with the midpoint falling below analysts' average estimate of $713.9 million.
On an adjusted basis, the company earned 13 cents per sharein the third quarter, compared with analysts' average estimate of 16 cents per share.
It posted third-quarter revenue of $693 million, missing analysts' estimate of $696.1 million.
Separately, CoStar announced on Tuesday that it would acquire Visual Lease, a software platform that specializes in lease management and will allow the company to provide these services to its clients.
Reporting by Priyanka.G in Bengaluru; Editing by Tasim Zahid
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