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Real estate services firm, CBRE Group Inc. reported third-quarter 2016 adjusted earnings of 50 cents per share, beating the Zacks Consensus Estimate of 48 cents. However, it lagged the prior-year quarter figure of 51 cents.
CBRE Group posted revenues of $3.19 billion, missing the Zacks Consensus Estimate of $3.29 billion. However, the top-line came in higher than $2.71 billion recorded a year ago.
Fee revenues were also up 9% year over year to $2.1 billion. However, excluding the Global Workplace Solutions business, revenues were up 2%, but fee revenues were almost unchanged.
Revenues from the Americas increased 14% (14% in local currency) year over year to $1.77 billion during the quarter.
Revenues from the EMEA region (primarily Europe) grew 30% (39% in local currency) year over year to $956.5 million, while that from Asia-Pacific (including Asia, Australia and New Zealand) climbed 26% (23% in local currency) to $358.3 million.
In the Global Investment Management segment, revenues totaled $91.8 million, down 20% (16% in local currency) year over year. In the Development Services segment, revenues declined 11% (11% in local currency) to $16.5 million.
Liquidity
CBRE exited the third quarter with cash and cash equivalents of $446.3 million, down from $540.4 million as of Dec 31, 2015.
2016 Outlook Reaffirmed
CBRE Group reaffirmed the expected adjusted earnings per share for 2016 in the range of $2.15–$2.30. The current Zacks Consensus Estimate is $2.17, which lies within this range.
Our Viewpoint
Going forward, we believe the company would benefit from strategic in-fill acquisitions, transformational deals, and improvement in leasing, property sales and outsourcing business. Yet, uncertainties in certain global economies, stiff competition and unfavorable foreign currency movements remain as concerns.
CBRE Group currently has a Zacks Rank #4 (Sell).
Better-ranked stocks in the real estate space include PennyMac Mortgage Investment Trust (PMT - Free Report) , Sun Hung Kai Properties Limited (SUHJY - Free Report) and RE/MAX Holdings, Inc. (RMAX - Free Report) . While both PennyMac Mortgage and Sun Hung Kai Properties sport a Zacks Rank #1 (Strong Buy), RE/MAX Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings growth rates for PennyMac Mortgage, Sun Hung Kai Properties and RE/MAX Holdings are 3%, 6.38% and 8.50%, respectively.
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CBRE Group's (CBG) Q3 Earnings Beat, Revenues Rise Y/Y
Real estate services firm, CBRE Group Inc. reported third-quarter 2016 adjusted earnings of 50 cents per share, beating the Zacks Consensus Estimate of 48 cents. However, it lagged the prior-year quarter figure of 51 cents.
CBRE Group posted revenues of $3.19 billion, missing the Zacks Consensus Estimate of $3.29 billion. However, the top-line came in higher than $2.71 billion recorded a year ago.
Fee revenues were also up 9% year over year to $2.1 billion. However, excluding the Global Workplace Solutions business, revenues were up 2%, but fee revenues were almost unchanged.
Revenues Details
Revenues from the Americas increased 14% (14% in local currency) year over year to $1.77 billion during the quarter.
Revenues from the EMEA region (primarily Europe) grew 30% (39% in local currency) year over year to $956.5 million, while that from Asia-Pacific (including Asia, Australia and New Zealand) climbed 26% (23% in local currency) to $358.3 million.
In the Global Investment Management segment, revenues totaled $91.8 million, down 20% (16% in local currency) year over year. In the Development Services segment, revenues declined 11% (11% in local currency) to $16.5 million.
Liquidity
CBRE exited the third quarter with cash and cash equivalents of $446.3 million, down from $540.4 million as of Dec 31, 2015.
2016 Outlook Reaffirmed
CBRE Group reaffirmed the expected adjusted earnings per share for 2016 in the range of $2.15–$2.30. The current Zacks Consensus Estimate is $2.17, which lies within this range.
Our Viewpoint
Going forward, we believe the company would benefit from strategic in-fill acquisitions, transformational deals, and improvement in leasing, property sales and outsourcing business. Yet, uncertainties in certain global economies, stiff competition and unfavorable foreign currency movements remain as concerns.
CBRE Group currently has a Zacks Rank #4 (Sell).
Better-ranked stocks in the real estate space include PennyMac Mortgage Investment Trust (PMT - Free Report) , Sun Hung Kai Properties Limited (SUHJY - Free Report) and RE/MAX Holdings, Inc. (RMAX - Free Report) . While both PennyMac Mortgage and Sun Hung Kai Properties sport a Zacks Rank #1 (Strong Buy), RE/MAX Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CBRE GROUP INC Price, Consensus and EPS Surprise
CBRE GROUP INC Price, Consensus and EPS Surprise | CBRE GROUP INC Quote
The long-term expected earnings growth rates for PennyMac Mortgage, Sun Hung Kai Properties and RE/MAX Holdings are 3%, 6.38% and 8.50%, respectively.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>