CoStar Group, Inc. (CSGP) Surge 14% on Strong Q2, Raised Outlook

CoStar Group, Inc. (NASDAQ: CSGP) is trading up 13.9% following strong Q2 results and raised guidance.

CoStar Group reported Q2 EPS of $0.80, $0.10 better than the analyst estimate of $0.70. Revenue for the quarter rose 36% to $147.7 million versus the consensus estimate of $144.23 million. EBITDA in the second quarter of 2014 increased to $37.6 million compared to $25.3 million in the second quarter of 2013, which represents an increase of $12.3 million or 49% year-over-year. Adjusted EBITDA (defined below) was $45.3 million in the second quarter of 2014 versus $32.6 million in the second quarter of 2013, which is an increase of 39% year-over-year.

CoStar Group, Inc. sees Q3 2014 EPS of $0.77-$0.80, versus the consensus of $0.74.

CoStar Group, Inc. sees FY2014 EPS of $3.05-$3.10, versus the consensus of $2.93. CoStar Group, Inc. sees FY2014 revenue of $565-571 million, versus the consensus of $567.52 million.

"In the second quarter of 2014, we closed our acquisition of Apartments.com, one of the leading internet apartment marketplaces," said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. "We are ahead of schedule and well on our way towards reaching three key goals with Apartments.com. We have achieved approximately $5.2 million in revenue synergies by converting 2,700 communities from indirect wholesale purchases to direct sales, which drove an overall 15% increase in our average revenue per apartment community. We have achieved approximately $5 million in annualized cost synergies. We also believe we have significantly improved the Apartments.com website which has resulted in a 27% quarter-over-quarter increase in leads generated for our clients. Overall, Apartments.com revenue growth accelerated to 16% year-over-year.

Florance continued, "Our LoopNet marketplace continues to show vibrant growth with 44.2 million profile views in the quarter, up 18% year-over-year. LoopNet revenues for the quarter were $27.5 million growing 6.2% over the prior quarter and LoopNet annual subscription revenue grew 148% year-over-year to $41.3 million in annualized revenue in the second quarter."

For earnings history and earnings-related data on CoStar Group, Inc. (CSGP) click here.

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