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CBRE Group (CBG) Beats Q1 Earnings & Revenues, Up Y/Y

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Real estate services firm, CBRE Group Inc. (CBG - Free Report) reported first-quarter 2015 adjusted earnings of 32 cents per share, comfortably beating both the Zacks Consensus Estimate and the prior-year quarter figure of 25 cents. A rise in revenues aided the results.

Revenues came in at nearly $2.1 billion, up 10.3% year over year and ahead of the Zacks Consensus Estimate of approximately $2.04 billion. Fee revenues were up 9.5% to $1.46 billion.

Quarter in Detail

Geographically, Americas Region was a top performer with 20% year-over-year growth in revenues, as all major business lines of this region reported double-digit revenue growth.

During the quarter, revenues in the Asia Pacific segment grew 7%, aiding the strong performance in Australia and China. However, In Europe, revenues from the Middle East and Africa (EMEA) segment declined 5%.

In the Global Investment Management segment, revenues totaled $110.2 million compared with $112.5 million in first-quarter 2014, due to depreciation of the Euro and British pound sterling. In the Development Services segment, revenues came in at $12.3 million compared with $12.4 million in the year-ago quarter.

Liquidity

CBRE exited first-quarter 2015 with cash and cash equivalents of $379 million, down from $740.9 million as of Dec 31, 2014.

Outlook

CBRE re-affirmed full-year 2015 earnings outlook, as adjusted, in the range of $1.90–$1.95 per share. The Zacks Consensus Estimate of $1.94 also lies in this range.

Our Viewpoint

We believe the company would benefit from improving leasing, property sales and outsourcing business, going forward. Moreover, strategic buyouts have played a vital role in enhancing CBRE’s geographic coverage as well as broadening its service offerings. At the same time, investments in people and platform augur well for the company and would help it enhance its market share.

CBRE Group currently carries a Zacks Rank #2 (Buy). Investors interested in the real estate industry may consider stocks like Kennedy-Wilson Holdings, Inc. (KW - Free Report) , Reis, Inc. (REIS - Free Report) and Landmark Infrastructure Partners LP (LMRK - Free Report) . All these stocks hold the same Zacks Rank as CBRE Group.



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