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Can CBRE Group Stock Keep its Winning Streak Alive in Q2?
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Key Takeaways
CBRE is expected to report 11.6% revenue growth and 29.6% EPS growth year over year in Q2.
A focus on contractual revenues, outsourcing demand and tech investments likely to support performance.
Elevated interest rates continued to strain credit markets and extend investor deal timelines.
CBRE Group, Inc. (CBRE - Free Report) , the global leader in real estate services, is gearing up to announce its second-quarter 2025 earnings on July 29, before the bell. The company has established itself as a leader in the industry, delivering a comprehensive suite of services such as property sales and leasing, property management, valuation, project management and consulting.
In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm reported an earnings surprise of 6.2%. Results reflected year-over-year revenue growth across all its business segments. The company’s resilient businesses generated net revenue growth of 17%, nearly matching the 18% increase in its transactional businesses.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 10.4%. The graph below depicts this surprise history:
During the second quarter, CBRE Group is likely to have witnessed positive results from its continued focus on building a more balanced and resilient operating model, marked by a shift toward a greater share of contractual revenues. Its broad diversification across asset types, service lines, global markets and client base — combined with prudent cost control —is likely to have supported performance during the period.
The increasing demand for outsourcing services offers significant opportunities for major industry players like CBRE to expand their client base and offerings. In the second quarter, CBRE Group is likely to have capitalized on these favorable trends. Facilities management is likely to have demonstrated solid momentum across both enterprise and local operations, with a healthy mix of new client wins and account expansions. Growth appears particularly strong in key enterprise sectors such as technology, industrial, data centers and healthcare.
In addition, CBRE is placing a strong emphasis on technology investments aimed at boosting operational efficiency, delivering differentiated client solutions and expanding its market presence. Leveraging technology is likely to have enabled the company to navigate current headwinds more effectively.
While a significant recovery may still be out of reach, a gradual but steady improvement in the Advisory Services segment is anticipated in the second quarter. The company is expected to have benefited from the solid leasing business.
However, ongoing macroeconomic uncertainty continues to weigh on commercial real estate transaction activity. Elevated interest rates have strained credit markets, prompting investors to remain cautious and extend deal timelines.
Projections for CBRE
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $9.36 billion. This suggests an increase of 11.6% year over year.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the April-June quarter’s earnings per share (EPS) has moved south a cent to $1.05 over the past two months. However, it suggests a 29.6% increase year over year.
Here is What Our Quantitative Model Predicts for CBRE:
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 of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the real estate operations industry — Colliers International Group (CIGI - Free Report) and Cushman & Wakefield (CWK - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Image: Bigstock
Can CBRE Group Stock Keep its Winning Streak Alive in Q2?
Key Takeaways
CBRE Group, Inc. (CBRE - Free Report) , the global leader in real estate services, is gearing up to announce its second-quarter 2025 earnings on July 29, before the bell. The company has established itself as a leader in the industry, delivering a comprehensive suite of services such as property sales and leasing, property management, valuation, project management and consulting.
In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm reported an earnings surprise of 6.2%. Results reflected year-over-year revenue growth across all its business segments. The company’s resilient businesses generated net revenue growth of 17%, nearly matching the 18% increase in its transactional businesses.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 10.4%. The graph below depicts this surprise history:
CBRE Group, Inc. Price and EPS Surprise
CBRE Group, Inc. price-eps-surprise | CBRE Group, Inc. Quote
CBRE: Factors at Play
During the second quarter, CBRE Group is likely to have witnessed positive results from its continued focus on building a more balanced and resilient operating model, marked by a shift toward a greater share of contractual revenues. Its broad diversification across asset types, service lines, global markets and client base — combined with prudent cost control —is likely to have supported performance during the period.
The increasing demand for outsourcing services offers significant opportunities for major industry players like CBRE to expand their client base and offerings. In the second quarter, CBRE Group is likely to have capitalized on these favorable trends. Facilities management is likely to have demonstrated solid momentum across both enterprise and local operations, with a healthy mix of new client wins and account expansions. Growth appears particularly strong in key enterprise sectors such as technology, industrial, data centers and healthcare.
In addition, CBRE is placing a strong emphasis on technology investments aimed at boosting operational efficiency, delivering differentiated client solutions and expanding its market presence. Leveraging technology is likely to have enabled the company to navigate current headwinds more effectively.
While a significant recovery may still be out of reach, a gradual but steady improvement in the Advisory Services segment is anticipated in the second quarter. The company is expected to have benefited from the solid leasing business.
However, ongoing macroeconomic uncertainty continues to weigh on commercial real estate transaction activity. Elevated interest rates have strained credit markets, prompting investors to remain cautious and extend deal timelines.
Projections for CBRE
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $9.36 billion. This suggests an increase of 11.6% year over year.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the April-June quarter’s earnings per share (EPS) has moved south a cent to $1.05 over the past two months. However, it suggests a 29.6% increase year over year.
Here is What Our Quantitative Model Predicts for CBRE:
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 of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the real estate operations industry — Colliers International Group (CIGI - Free Report) and Cushman & Wakefield (CWK - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
CIGI, scheduled to report quarterly numbers on July 31, has an Earnings ESP of +1.48% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CWK, slated to release quarterly numbers on Aug. 5, has an Earnings ESP of +0.92% and carries a Zacks Rank of 3 at present.