CoStar stock tumbles as revenue miss and trimmed outlook highlights one of worst real estate markets in decades

Shares of CoStar Group Inc.
CSGP,
-5.70%
tumbled 7.7% toward a six-month low in morning trading Wednesday, after the real estate marketplace provider came up short on third-quarter revenue and trimmed its full-year outlook, amid “one of the worst property markets in decades.” The stock was currently the fourth-worst performer in the S&P 500
SPX,
-1.00%
on the day. Revenue rose 12.2% to $624.7 million but missed the FactSet consensus of $625.7 million, and the full-year outlook was cut to $2.445 billion to $2.450 billion from $2.45 billion to $2.46 billion. Adjusted third-quarter earnings per share of 30 cents was the same as a year ago and above the FactSet consensus of 29 cents. “The combination of rising prices and mortgage – rising mortgage rates has pushed affordability to its lowest level since July of 1985,” said Chief Executive Andy Florence in the post-earnings conference call with analysts, according to an AlphaSense transcript. The stock, which was headed for the lowest close since April 25, has plunged 25.4% over the past three months while the S&P 500 has given up 7.9%.