Why CoStar Group Stock Is Falling Today
Shares of CoStar Group (NASDAQ: CSGP) were down more than 6% this morning after the company reported earnings yesterday afternoon. Although the company raised revenue guidance for the full year, expenses related to its acquisition of residential marketplace Homes.com is causing it to lower its projections for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Image source: Getty Images.
The reduced guidance is especially disconcerting after management raised its projections during its first-quarter update. For now, CoStar management deserves the benefit of the doubt. The purchase of Homes.com was a follow-up to CoStar's acquisition of Homesnap, a tool for managing workflow and marketing.
Source Fool.com
