It has been about a month since the last earnings report for CBRE Group, Inc. . Shares have lost about 4.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CBRE Q1 Earnings & Revenues Beat Estimates, Up Y/Y
CBRE Group reported first-quarter 2017 adjusted earnings per share of $0.43, beating the Zacks Consensus Estimate of $0.33. The figure also denoted a 19% increase from the prior-year quarter tally of $0.36. Results reflect better-than-expected growth in revenues.
On a GAAP basis, earnings per share came in at $0.38, ahead of the prior-year quarter earnings per share of $0.24.
The company posted revenues of around $2.98 billion, outpacing the Zacks Consensus Estimate of $2.96 billion. In addition, revenues came higher than the year-ago figure of $2.85 billion.
Fee revenues were up 5% (7% in local currency) year over year to $1.9 billion. Further, excluding contributions from all acquisitions completed after first-quarter 2016, organic fee revenue advanced 4% (6% in local currency).
Quarter in Detail
CBRE Group’s largest business segment – The Americas – reported 7% rise in revenues to $1.7 billion (same in local currency), while Asia Pacific (APAC) witnessed 10% increase in revenues to $341.1 million (9% local currency), with solid growth recorded in Greater China, India and Singapore.
However, revenue growth in Europe, the Middle East & Africa (EMEA) was adversely affected by foreign currency movement, mainly the depreciation of the British pound sterling. As a result, although EMEA revenues rose 9% in local currency, the figure was flat at $844.2 million after conversion to the U.S. dollars.
In the Global Investment Management segment, revenues totaled $89.6 million, down nearly 1% (up 3% in local currency) year over year, while the Development Services segment reported revenues of $13.7 million, declining 19% year over year.
Notably, in the first quarter, the company signed 29 occupier outsourcing contracts in EMEA and APAC (combined), while 16 were signed in the global health care sector.
Liquidity
CBRE exited first-quarter 2017 with cash and cash equivalents of $533.3 million, down from $762.6 million as of Dec 31, 2016.
2017 Outlook
The company did not update the full-year guidance this time.
During its prior-quarter earnings release, the company projected adjusted earnings per share for 2017 in the range of $2.35–$2.45.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, CBRE Group's stock has a poor score of 'F', on both growth and momentum front. However, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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CBRE Group (CBG) Down 4.5% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for CBRE Group, Inc. . Shares have lost about 4.5% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CBRE Q1 Earnings & Revenues Beat Estimates, Up Y/Y
CBRE Group reported first-quarter 2017 adjusted earnings per share of $0.43, beating the Zacks Consensus Estimate of $0.33. The figure also denoted a 19% increase from the prior-year quarter tally of $0.36. Results reflect better-than-expected growth in revenues.
On a GAAP basis, earnings per share came in at $0.38, ahead of the prior-year quarter earnings per share of $0.24.
The company posted revenues of around $2.98 billion, outpacing the Zacks Consensus Estimate of $2.96 billion. In addition, revenues came higher than the year-ago figure of $2.85 billion.
Fee revenues were up 5% (7% in local currency) year over year to $1.9 billion. Further, excluding contributions from all acquisitions completed after first-quarter 2016, organic fee revenue advanced 4% (6% in local currency).
Quarter in Detail
CBRE Group’s largest business segment – The Americas – reported 7% rise in revenues to $1.7 billion (same in local currency), while Asia Pacific (APAC) witnessed 10% increase in revenues to $341.1 million (9% local currency), with solid growth recorded in Greater China, India and Singapore.
However, revenue growth in Europe, the Middle East & Africa (EMEA) was adversely affected by foreign currency movement, mainly the depreciation of the British pound sterling. As a result, although EMEA revenues rose 9% in local currency, the figure was flat at $844.2 million after conversion to the U.S. dollars.
In the Global Investment Management segment, revenues totaled $89.6 million, down nearly 1% (up 3% in local currency) year over year, while the Development Services segment reported revenues of $13.7 million, declining 19% year over year.
Notably, in the first quarter, the company signed 29 occupier outsourcing contracts in EMEA and APAC (combined), while 16 were signed in the global health care sector.
Liquidity
CBRE exited first-quarter 2017 with cash and cash equivalents of $533.3 million, down from $762.6 million as of Dec 31, 2016.
2017 Outlook
The company did not update the full-year guidance this time.
During its prior-quarter earnings release, the company projected adjusted earnings per share for 2017 in the range of $2.35–$2.45.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
CBRE Group, Inc. Price and Consensus
CBRE Group, Inc. Price and Consensus | CBRE Group, Inc. Quote
VGM Scores
At this time, CBRE Group's stock has a poor score of 'F', on both growth and momentum front. However, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.