We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CBRE Group (CBRE) Q2 Earnings Top Estimates, Revenues Rise Y/Y
Read MoreHide Full Article
CBRE Group Inc. (CBRE - Free Report) reported second-quarter 2022 core earnings per share (EPS) of $1.83, beating the Zacks Consensus Estimate of $1.38 and improving from the year-ago tally of $1.34.
The quarterly results reflect the benefits of diversifying across asset types, business lines, client types and geographies.
According to Bob Sulentic, CBRE’s president and chief executive officer, “All three business segments posted double-digit revenue and segment operating profit growth, despite the significant currency headwinds that affected all U.S.-based global companies.”
CBRE Group generated revenues of $7.77 billion, up 20.3% year over year. However, revenues compared unfavorably with the Zacks Consensus Estimate of $7.84 billion. Net revenues jumped 22.8% (26.5% in local currency) year over year to $4.8 billion. Core EBITDA surged 29.8% (33.6% in local currency) to $919 million.
In the second quarter of 2022, CBRE completed three in-fill acquisitions for a total of $42.2 million in cash and deferred consideration. These included a property evaluation and advisory firm in New Zealand, a property advisory consultant in Scotland and a sustainability advisory specialist in France.
Quarter in Detail
CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 21.1% (24.5% in local currency) to $2.59 billion. In property leasing, the Americas fueled growth, with revenues up 56% and global revenues increasing 40% (43% in local currency) year over year. In the capital leasing business, the Americas led sales revenue growth across regions, increasing 26%, while global sales revenues increased 17% (21% in local currency). The operating profit came in at $521 million, up 12.1% (15.2% in local currency) from the year-ago period.
The Global Workplace Solutions (“GWS”) segment registered a year-over-year increase of 20.2% (23.8% in local currency) in revenues to $4.9 billion. Exclusive of $338 million of revenues from Turner & Townsend, GWS revenues increased 12% (16% in local currency). The operating profit increased 28.3% (33.4% in local currency) to $218 million. CBRE Group noted that the growth was broad-based by client type and supported by a mix of new wins and expansions.
The Real Estate Investments segment recorded a 13.9% (20.8% in local currency) jump in revenues to $277 million from the year-ago quarter. The operating profit increased to $275 million from the $154 million reported a year ago.
At the end of the second quarter of 2022, assets under management increased by $0.1 billion ($4.4 billion in local currency) to $146.9 billion, denoting a record high.
Balance Sheet Position
CBRE Group exited the second quarter of 2022 with cash and cash equivalents of $1.19 billion, down from $2.4 billion as of Dec 31, 2021.
As of Jun 30, 2022, the company had $4.2 billion in total liquidity. This comprised $1.2 billion in cash in addition to the ability to borrow a total of $3.0 billion under its revolving credit facilities, net of any outstanding letters of credit. The company’s net leverage ratio was 0.20 as of the same date. This is significantly less than CBRE’s primary debt covenant of 4.25X.
During the June-end quarter, the company repurchased 7.5 million shares at an average price of $81.39, spending around $611.2 million. As of Jul 31, 2022, it had $898.4 million of stock-repurchase capacity remaining under its authorized buyback program.
Currently, CBRE Group carries a Zacks Rank #4 (Sell).
Jones Lang LaSalle Inc. (JLL - Free Report) reported second-quarter 2022 adjusted EPS of $4.48, beating the Zacks Consensus Estimate of $4.10. The reported figure increased 6.7% from the prior-year quarter’s $4.20. JLL’s revenues in the quarter totaled $5.3 billion, surpassing the Zacks Consensus Estimate of $4.9 billion. It was 17.4% higher than the year-ago quarter’s tally. JLL’s results reflected robust performance in the Capital Markets and Markets Advisory businesses.
Colliers International Group’s (CIGI - Free Report) second-quarter 2022 adjusted EPS of 1.84 cents outpaced the Zacks Consensus Estimate of $1.72. The figure increased 16.5% year over year. Colliers International Group’s quarterly revenues of $1.13 billion beat the Zacks Consensus Estimate of $1.04 billion. The figure highlighted a rise of 19.2% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
CBRE Group (CBRE) Q2 Earnings Top Estimates, Revenues Rise Y/Y
CBRE Group Inc. (CBRE - Free Report) reported second-quarter 2022 core earnings per share (EPS) of $1.83, beating the Zacks Consensus Estimate of $1.38 and improving from the year-ago tally of $1.34.
The quarterly results reflect the benefits of diversifying across asset types, business lines, client types and geographies.
According to Bob Sulentic, CBRE’s president and chief executive officer, “All three business segments posted double-digit revenue and segment operating profit growth, despite the significant currency headwinds that affected all U.S.-based global companies.”
CBRE Group generated revenues of $7.77 billion, up 20.3% year over year. However, revenues compared unfavorably with the Zacks Consensus Estimate of $7.84 billion. Net revenues jumped 22.8% (26.5% in local currency) year over year to $4.8 billion. Core EBITDA surged 29.8% (33.6% in local currency) to $919 million.
In the second quarter of 2022, CBRE completed three in-fill acquisitions for a total of $42.2 million in cash and deferred consideration. These included a property evaluation and advisory firm in New Zealand, a property advisory consultant in Scotland and a sustainability advisory specialist in France.
Quarter in Detail
CBRE Group’s Advisory Services segment reported a year-over-year revenue increase of 21.1% (24.5% in local currency) to $2.59 billion. In property leasing, the Americas fueled growth, with revenues up 56% and global revenues increasing 40% (43% in local currency) year over year. In the capital leasing business, the Americas led sales revenue growth across regions, increasing 26%, while global sales revenues increased 17% (21% in local currency). The operating profit came in at $521 million, up 12.1% (15.2% in local currency) from the year-ago period.
The Global Workplace Solutions (“GWS”) segment registered a year-over-year increase of 20.2% (23.8% in local currency) in revenues to $4.9 billion. Exclusive of $338 million of revenues from Turner & Townsend, GWS revenues increased 12% (16% in local currency). The operating profit increased 28.3% (33.4% in local currency) to $218 million. CBRE Group noted that the growth was broad-based by client type and supported by a mix of new wins and expansions.
The Real Estate Investments segment recorded a 13.9% (20.8% in local currency) jump in revenues to $277 million from the year-ago quarter. The operating profit increased to $275 million from the $154 million reported a year ago.
At the end of the second quarter of 2022, assets under management increased by $0.1 billion ($4.4 billion in local currency) to $146.9 billion, denoting a record high.
Balance Sheet Position
CBRE Group exited the second quarter of 2022 with cash and cash equivalents of $1.19 billion, down from $2.4 billion as of Dec 31, 2021.
As of Jun 30, 2022, the company had $4.2 billion in total liquidity. This comprised $1.2 billion in cash in addition to the ability to borrow a total of $3.0 billion under its revolving credit facilities, net of any outstanding letters of credit. The company’s net leverage ratio was 0.20 as of the same date. This is significantly less than CBRE’s primary debt covenant of 4.25X.
During the June-end quarter, the company repurchased 7.5 million shares at an average price of $81.39, spending around $611.2 million. As of Jul 31, 2022, it had $898.4 million of stock-repurchase capacity remaining under its authorized buyback program.
Currently, CBRE Group carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CBRE Group, Inc. Price, Consensus and EPS Surprise
CBRE Group, Inc. price-consensus-eps-surprise-chart | CBRE Group, Inc. Quote
Performance of a Few Companies
Jones Lang LaSalle Inc. (JLL - Free Report) reported second-quarter 2022 adjusted EPS of $4.48, beating the Zacks Consensus Estimate of $4.10. The reported figure increased 6.7% from the prior-year quarter’s $4.20. JLL’s revenues in the quarter totaled $5.3 billion, surpassing the Zacks Consensus Estimate of $4.9 billion. It was 17.4% higher than the year-ago quarter’s tally. JLL’s results reflected robust performance in the Capital Markets and Markets Advisory businesses.
Colliers International Group’s (CIGI - Free Report) second-quarter 2022 adjusted EPS of 1.84 cents outpaced the Zacks Consensus Estimate of $1.72. The figure increased 16.5% year over year. Colliers International Group’s quarterly revenues of $1.13 billion beat the Zacks Consensus Estimate of $1.04 billion. The figure highlighted a rise of 19.2% year over year.