CoStar Group, Inc (CSGP) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $23.20 million, or $ 0.72 a share in the quarter, against a net loss of $5.36 million, or $0.17 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $36.02 million, or $1.11 a share compared with $17.20 million or $0.53 a share, a year ago.
Revenue during the quarter grew 12.50 percent to $212.71 million from $189.08 million in the previous year period. Gross margin for the quarter expanded 857 basis points over the previous year period to 80.15 percent. Operating margin for the quarter period stood at positive 18.61 percent as compared to a negative 0.23 percent for the previous year period.
Operating income for the quarter was $39.60 million, compared with an operating loss of $0.43 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $67.05 million compared with $35.47 million in the prior year period. At the same time, adjusted EBITDA margin improved 1277 basis points in the quarter to 31.52 percent from 18.76 percent in the last year period.
“We achieved another strong quarter of profitable revenue growth in the third quarter of 2016,” said Andrew C. Florance, Founder and Chief Executive Officer of CoStar Group. “Our focus on investing in growth and cost management has generated net income and EBITDA through the first nine months of 2016 that is as high or higher than in any other 12 month period in our history. Net new sales of our flagship service CoStar Suite continued to accelerate. Year-to-date in 2016, we have outpaced CoStar Suite net new sales over the same time period in 2015 by 33%.”
For the fourth-quarter, Costar Group forecasts revenue to be in the range of $835 million to $838 million. Costar Group forecasts revenue to be in the range of $216 million to $219 million for fiscal year 2016. Costar Group projects net income to be in the range of $24.40 million to $27.30 million for the fourth-quarter. For financial year 2016, Costar Group projects net income to be in the range of $79.90 million to $82.70 million. Costar Group expects adjusted net income to be in the range of $39.90 million to $41.50 million for the fourth-quarter. For the financial year 2016, Costar Group expects adjusted net income to be in the range of $136.10 million to $137.70 million. The company expects diluted earnings per share to be in the range of $0.75 to $0.84 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $2.47 to $2.55. On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.23 to $1.28 for the fourth-quarter. For fiscal year 2016, the company expects diluted earnings per share to be in the range of $4.20 to $4.25 on adjusted basis.
Working capital increases sharply
CoStar Group, Inc has recorded an increase in the working capital over the last year. It stood at $429.98 million as at Sep. 30, 2016, up 37.13 percent or $116.43 million from $313.56 million on Sep. 30, 2015. Current ratio was at 3.80 as on Sep. 30, 2016, up from 2.92 on Sep. 30, 2015. Days sales outstanding went down to 22 days for the quarter compared with 26 days for the same period last year.
Debt comes down
CoStar Group, Inc has recorded a decline in total debt over the last one year. It stood at $337.52 million as on Sep. 30, 2016, down 8.78 percent or $32.48 million from $370 million on Sep. 30, 2015. Total debt was 15.68 percent of total assets as on Sep. 30, 2016, compared with 17.70 percent on Sep. 30, 2015. Debt to equity ratio was at 0.21 as on Sep. 30, 2016, down from 0.25 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
