CoStar's quarterly results forecast fails to impress investors, shares fall

Feb 24 (Reuters) - CoStar Group CSGP.O forecast first-quarter profit and revenue below Wall Street expectations on Tuesday, as broader economic uncertainty weighed on demand across its commercial property platforms.

Shares of the Arlington, Virginia-based company were down over 4% in extended trading.

CoStar is leveraging its Homes.com marketplace to offset sluggish commercial real estate demand. However, aggressive spending on this consumer expansion continues to pressure the company's bottom line.

Analysts have said the firm's aggressive expansion into residential marketplaces has been expensive and is likely to pressure margins for years, particularly as competition from Zillow ZG.O intensifies.

The company forecast first-quarter revenue in the range of $890 million to $900 million, falling below analysts' average estimate of $905.1 million, according to data compiled by LSEG.

CoStar also expects adjusted profit between 16 cents and 19 cents per share for the first quarter, compared with estimates of 25 cents.

The company reported revenue of $900 million for the quarter ended December 31, compared with estimates of $885.6 million.

Fourth-quarter adjusted profit came in at 31 cents per share, compared with estimates of 27 cents.