What happened
Shares of the online real estate company CoStar Group (CSGP -0.96%) rose roughly 14.8% today after the company reported strong earnings results for the second quarter of the year.
So what
CoStar reported $83 million of profit in the second quarter on total revenue of $536 million, both numbers that topped analyst expectations for the quarter.
"We delivered outstanding results in the second quarter of 2022," CoStar's CEO Andrew C. Florance said in a statement. "With net new bookings of $84 million we easily surpassed the record sales results we set in the first quarter of this year. Our top three products, CoStar, Apartments.com and LoopNet, all achieved high double-digit sales increases over the second quarter of 2021."
Furthermore, the company raised its outlook. CoStar now expects revenue to finish the full year of 2022 at $2.165 billion to $2.18 billion, which is $13 million higher at the midpoint compared to previous guidance.
CoStar also now expects adjusted earnings for 2022 to come in between $1.09 and 1.13 based on 395 million outstanding shares, which represents an $0.11 boost from management's previous guidance.
Now what
CoStar just turned in a strong quarter amid a difficult economic backdrop and raised guidance, which should give shareholders confidence in the company moving forward.
Also, with the Federal Reserve indicating this afternoon that the pace of interest rate hikes may start to soon slow, that could lead to lower mortgage rates, which generally create more demand in the real estate market and for real estate companies.
