What You Need To Know Ahead Of CoStar’s Q2 2017 Earnings Call
Commercial real estate data and analytics heavyweight CoStar will host its Q2 earnings call Thursday at 11 a.m. EST.
This will be the D.C.-based company’s first public call since its competitor, Kansas City, Missouri-based Xceligent, filed an antitrust suit against the firm June 28, alleging CoStar has created a monopoly and engaged in years of anticompetitive behavior.
The two have been in a legal battle since CoStar filed a lawsuit against Xceligent in December, claiming it systematically attempted to steal and resell the CoStar's proprietary data and images — its most valuable assets.
B. Riley & Co. analyst Mike Crawford predicts CoStar founder Andrew Florance will address the countersuit in detail on Thursday’s earnings call, as he has done the last two quarters regarding the company’s initial copyright suit.
“Given CoStar’s clear, detailed evidence of IP theft by Xceligent listed on the company’s website, we believe this countersuit is likely to be unsuccessful and is likely a negotiating tactic to reach a more favorable settlement,” Crawford said in a July 14 report, reaffirming its "Buy" rating for CoStar stock and $275 to $325 price target projections.
Crawford also said he does not foresee this legal battle between CoStar and Xceligent having any bearing on CoStar’s future performance or on shareholders' confidence in the company. CoStar's stock was trading at $281.32 when the markets closed on Tuesday, slightly down from the all-time high of $283.45 it hit Thursday afternoon.
To listen in or participate on the conference call, dial (877) 260-8896 (from the United States and Canada) or (612) 332-0632 (from all other countries) and refer to conference code 426643 or access the audio website link at www.costargroup.com/investors/stock-info.