It has been about a month since the last earnings report for CBRE Group, Inc. . Shares have added about 15.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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 Tops Q4 Earnings; Solid Growth in Asia Pacific
CBRE Group reported fourth-quarter 2016 adjusted earnings per share of $0.93, beating the Zacks Consensus Estimate of $0.79. The figure also denoted a 14.8% increase from the prior-year quarter tally of $0.81.
On a GAAP basis, earnings per share came in at $0.78, significantly ahead of the prior-year quarter earnings per share of $0.53.
CBRE Group posted revenues of $3.82 billion, which were higher than the year-ago figure of $3.7 billion. However, the figure lagged the Zacks Consensus Estimate of $3.89 billion.
Fee revenues were up 4% (6% in local currency) year over year to $2.7 billion. Further, excluding contributions from all acquisitions, organic fee revenue advanced 3% (5% in local currency).
For full-year 2016, CBRE reported earnings per share of $1.69, reflecting around 3.7% growth from the prior year. Adjusted earnings per share of $2.30 denoted an increase of 12.2% from a year ago. Revenues climbed 20.4% year over year to $13.1 billion.
Revenues Details
Revenues from the Americas increased 6% (6% in local currency) year over year to $2.1 billion during the quarter; while that from the Asia-Pacific region climbed 22% (19% in local currency) to $462.8 million with solid growth throughout the region. In fact, Asia Pacific emerged as the company’s fastest growing region for the quarter.
However, revenues from the EMEA region declined 3% (increased 6% in local currency) year over year to nearly $1.2 billion. Results marked adverse impact from foreign currency movement and mainly the depreciation of the British pound sterling. Nevertheless, despite the Brexit fallout, the UK market saw revenue growth of 8% in local currency, driven by the occupier outsourcing business line.
In the Global Investment Management segment, revenues totaled $91.9 million, down 35% (33% in local currency) year over year; while the Development Services segment reported revenues of $20.3 million, unchanged year over year. Notably, in the fourth quarter, the company signed 110 outsourcing contracts and there were robust gains in the health care sector.
Liquidity
CBRE exited the year 2016 with cash and cash equivalents of $762.6 million, up from $540.4 million as of Dec 31, 2015.
2017 Outlook
CBRE Group projects adjusted earnings per share for 2017 in the range of $2.35–$2.45. Notably, the company anticipates growth to be hindered by a $0.06 per share impact from adverse foreign currency movement.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted lower by 39.83% due to these changes.
VGM Scores
At this time, CBRE Group's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #1 (Strong Buy). We are looking for an above average return from the stock in the next few months.
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Why Is CBRE Group (CBG) Up 15.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for CBRE Group, Inc. . Shares have added about 15.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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 Tops Q4 Earnings; Solid Growth in Asia Pacific
CBRE Group reported fourth-quarter 2016 adjusted earnings per share of $0.93, beating the Zacks Consensus Estimate of $0.79. The figure also denoted a 14.8% increase from the prior-year quarter tally of $0.81.
On a GAAP basis, earnings per share came in at $0.78, significantly ahead of the prior-year quarter earnings per share of $0.53.
CBRE Group posted revenues of $3.82 billion, which were higher than the year-ago figure of $3.7 billion. However, the figure lagged the Zacks Consensus Estimate of $3.89 billion.
Fee revenues were up 4% (6% in local currency) year over year to $2.7 billion. Further, excluding contributions from all acquisitions, organic fee revenue advanced 3% (5% in local currency).
For full-year 2016, CBRE reported earnings per share of $1.69, reflecting around 3.7% growth from the prior year. Adjusted earnings per share of $2.30 denoted an increase of 12.2% from a year ago. Revenues climbed 20.4% year over year to $13.1 billion.
Revenues Details
Revenues from the Americas increased 6% (6% in local currency) year over year to $2.1 billion during the quarter; while that from the Asia-Pacific region climbed 22% (19% in local currency) to $462.8 million with solid growth throughout the region. In fact, Asia Pacific emerged as the company’s fastest growing region for the quarter.
However, revenues from the EMEA region declined 3% (increased 6% in local currency) year over year to nearly $1.2 billion. Results marked adverse impact from foreign currency movement and mainly the depreciation of the British pound sterling. Nevertheless, despite the Brexit fallout, the UK market saw revenue growth of 8% in local currency, driven by the occupier outsourcing business line.
In the Global Investment Management segment, revenues totaled $91.9 million, down 35% (33% in local currency) year over year; while the Development Services segment reported revenues of $20.3 million, unchanged year over year. Notably, in the fourth quarter, the company signed 110 outsourcing contracts and there were robust gains in the health care sector.
Liquidity
CBRE exited the year 2016 with cash and cash equivalents of $762.6 million, up from $540.4 million as of Dec 31, 2015.
2017 Outlook
CBRE Group projects adjusted earnings per share for 2017 in the range of $2.35–$2.45. Notably, the company anticipates growth to be hindered by a $0.06 per share impact from adverse foreign currency movement.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted lower by 39.83% due to these changes.
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 nice Growth Score of 'B', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #1 (Strong Buy). We are looking for an above average return from the stock in the next few months.