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What's in the Offing for CBRE Group (CBRE) in Q1 Earnings?

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CBRE Group, Inc. (CBRE - Free Report) is slated to release first-quarter 2022 earnings on May 5 before the bell. Results are anticipated to display year-over-year growth in revenues and earnings.

In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm delivered a 23.73% earnings surprise. Results reflected better-than-expected revenues.

Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 34.2%. The graph below depicts this surprise history:

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. price-eps-surprise | CBRE Group, Inc. Quote

Let’s see how things have shaped up before this announcement.

Factors at Play

In the March-end quarter, CBRE Group is likely to have continued its focus on a better-balanced and more resilient business model, shifting the company’s business mix to a more contractual one. Moreover, in recent years, the company has made efforts to strengthen its Global Workplace Solutions (GWS) segment, which provides a broad suite of integrated, contractual-based services to the occupiers of real estate, including facilities management, project management, transaction management and management consulting.

The firm has grown organically and banked on strategic in-fill acquisitions to boost its service offerings and geographical reach over the years. These efforts are likely to have aided the company’s performance during the quarter under consideration. The broad diversification across property types, lines of business, geographic markets and clients and disciplined expense management are anticipated to have helped CBRE in the quarter under consideration.

However, macroeconomic uncertainty and an adverse impact on commercial real estate transactions are major concerns. Also, there is stiff competition from other industry players. These factors might have deterred the growth tempo to some extent.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $7.72 billion, suggesting an increase of 29.9% year over year.

The Zacks Consensus Estimate for first-quarter fee revenues from Advisory Services stands at $2,124 million, indicating a decrease from the prior quarter’s $3,319 million but up from the prior-year quarter’s $1,689 million.

The consensus estimate for GWS’ fee revenues is $1,924 million, suggesting growth from the previous quarter’s $1,855 million and the year-ago quarter’s $1,465 million.

Fee revenues from Real Estate Investments are estimated at $272 million for the to-be-reported quarter, calling for a decrease from the fourth quarter’s $413 million but up from the year-earlier period’s $211 million.

Before the quarterly earnings release, analysts seem to be optimistic about the company’s prospects as the Zacks Consensus Estimate for the January-March quarter’s earnings per share (EPS) has moved a cent north to $1.10 over the past week. It also suggests a 27.9% year-over-year increase.

Here Is What Our Quantitative Model Predicts:

Our proven model does not conclusively predict an earnings surprise for CBRE Group this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

CBRE Group currently carries a Zacks Rank #3 and has an Earnings ESP of -0.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Upcoming Releases

It’s time to look forward to two stocks from the real estate operations industry: Jones Lang LaSalle Incorporated (JLL - Free Report) and Cushman & Wakefield PLC (CWK - Free Report) .

While Cushman & Wakefield is scheduled to report its numbers on May 5, Jones Lang LaSalle is slated to release first-quarter 2022 results on May 9.

The Zacks Consensus Estimate for Cushman & Wakefield’s first-quarter 2022 EPS is pegged at 20 cents, implying a year-over-year increase of 81.8%. CWK currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Jones Lang LaSalle’s first-quarter 2022 EPS stands at $2.05, suggesting a year-over-year decrease of 2.4%. JLL currently carries a Zacks Rank of 3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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