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CBRE (CBRE) Reliance on International Sales: What Investors Need to Know
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Did you analyze how CBRE Group (CBRE - Free Report) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this provider of real estate investment management services, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of CBRE's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $9.04 billion, experiencing an increase of 14.8% year over year. Next, we'll explore the breakdown of CBRE's international revenue to understand the importance of its overseas business operations.
A Closer Look at CBRE's Revenue Streams Abroad
During the quarter, United Kingdom contributed $1.26 billion in revenue, making up 13.9% of the total revenue. When compared to the consensus estimate of $1.25 billion, this meant a surprise of +0.9%. Looking back, United Kingdom contributed $1.2 billion, or 14.2%, in the previous quarter, and $1.1 billion, or 14%, in the same quarter of the previous year.
All other countries accounted for 28.4% of the company's total revenue during the quarter, translating to $2.57 billion. Revenues from this region represented a surprise of -7.69%, with Wall Street analysts collectively expecting $2.78 billion. When compared to the preceding quarter and the same quarter in the previous year, All other countries contributed $2.53 billion (30.1%) and $2.49 billion (31.7%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect CBRE to report $10.34 billion in total revenue for the current fiscal quarter, indicating an increase of 15.5% from the year-ago quarter. United Kingdom and All other countries are expected to contribute 13.7% ($1.42 billion) and 30.5% ($3.15 billion) to the total revenue, respectively.
Analysts expect the company to report a total annual revenue of $35.54 billion for the full year, marking an increase of 11.2% compared to last year. The expected revenue contributions from United Kingdom and All other countries are projected to be 13.9% ($4.94 billion) and 30.7% ($10.89 billion) of the total revenue, in that order.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for CBRE. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Over the past month, the stock has seen an increase of 7.6% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2%. The Zacks Finance sector, CBRE's industry group, has descended 5.3% over the identical span. In the past three months, there's been an increase of 20.1% in the company's stock price, against a rise of 7.9% in the S&P 500 index. The broader sector has declined by 0.8% during this interval.
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CBRE (CBRE) Reliance on International Sales: What Investors Need to Know
Did you analyze how CBRE Group (CBRE - Free Report) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this provider of real estate investment management services, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of CBRE's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $9.04 billion, experiencing an increase of 14.8% year over year. Next, we'll explore the breakdown of CBRE's international revenue to understand the importance of its overseas business operations.
A Closer Look at CBRE's Revenue Streams Abroad
During the quarter, United Kingdom contributed $1.26 billion in revenue, making up 13.9% of the total revenue. When compared to the consensus estimate of $1.25 billion, this meant a surprise of +0.9%. Looking back, United Kingdom contributed $1.2 billion, or 14.2%, in the previous quarter, and $1.1 billion, or 14%, in the same quarter of the previous year.
All other countries accounted for 28.4% of the company's total revenue during the quarter, translating to $2.57 billion. Revenues from this region represented a surprise of -7.69%, with Wall Street analysts collectively expecting $2.78 billion. When compared to the preceding quarter and the same quarter in the previous year, All other countries contributed $2.53 billion (30.1%) and $2.49 billion (31.7%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect CBRE to report $10.34 billion in total revenue for the current fiscal quarter, indicating an increase of 15.5% from the year-ago quarter. United Kingdom and All other countries are expected to contribute 13.7% ($1.42 billion) and 30.5% ($3.15 billion) to the total revenue, respectively.Analysts expect the company to report a total annual revenue of $35.54 billion for the full year, marking an increase of 11.2% compared to last year. The expected revenue contributions from United Kingdom and All other countries are projected to be 13.9% ($4.94 billion) and 30.7% ($10.89 billion) of the total revenue, in that order.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for CBRE. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
CBRE currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in CBRE's Stock Price
Over the past month, the stock has seen an increase of 7.6% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2%. The Zacks Finance sector, CBRE's industry group, has descended 5.3% over the identical span. In the past three months, there's been an increase of 20.1% in the company's stock price, against a rise of 7.9% in the S&P 500 index. The broader sector has declined by 0.8% during this interval.