Shares of CoStar Group (CSGP) tumbled 7.51% in after-hours trading on Tuesday, following the company's release of its fourth quarter 2024 earnings results that fell short of Wall Street expectations.

The real estate data and analytics firm reported Q4 earnings per share of $0.15, missing analysts' estimates of $0.22. While revenue for the quarter came in at $709 million, slightly above the consensus estimate of $703 million, the company's guidance for the first quarter of 2025 and full-year 2025 missed analysts' projections.

CoStar Group's weaker-than-expected performance and outlook, particularly in its residential real estate business, raised concerns among investors and analysts. The company's mixed net new sales performance in its residential segment weighed on the stock, with some analysts citing potential challenges in this area as a key risk factor.