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Can CBRE Group Stock Keep Its Winning Streak Alive in Q3?
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Key Takeaways
CBRE Group will release Q3 2025 earnings on Oct. 23, before the market opens.
Q3 results are expected to show 9.83% revenue growth and a 22.5% EPS increase year over year.
Strong leasing, outsourcing demand and cost discipline are likely to have supported CBRE's performance.
CBRE Group, Inc. (CBRE - Free Report) , the global leader in real estate services, is gearing up to announce its third-quarter 2025 earnings on Oct. 23, 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 13.33%. Results reflected year-over-year revenue growth across most of its business segments except the Real Estate Investments segment. The company’s resilient businesses generated net revenue growth of 17%, surpassing the 15% increase in its transactional businesses.
Over the preceding four quarters, CBRE surpassed the Zacks Consensus Estimate on each occasion, the average beat being 9.42%. The graph below depicts this surprise history:
In the third quarter, CBRE Group is likely to have benefited from its ongoing efforts to create a more balanced and resilient operating model, emphasizing a higher proportion of contractual and recurring revenues. The company’s broad diversification across property types, service offerings, geographies and clients, along with disciplined cost management, probably helped sustain solid performance through 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 third quarter, CBRE Group is likely to have capitalized on these favorable trends.
CBRE’s enterprise businesses’ performance may have been supported by a balanced mix of new client wins and expansions. The company experienced growth in hyperscale data centers, as well as clients in the technology, health care and industrial sectors in the second quarter. 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.
While a significant recovery may still be out of reach, a gradual but steady improvement in the Advisory Services segment is anticipated in the third 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 $9.92 billion. This suggests an increase of 9.83% year over year.
The consensus mark for total revenues from Advisory Services stands at $2.04 billion, up from nearly $2 billion in the prior quarter. Estimates for revenues from Building Operations & Experience are pegged at $5.76 billion, almost in line with the prior-quarter figure.
Before the quarterly earnings release, analysts seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s earnings per share (EPS) has moved marginally north to $1.47 over the past month. It also suggests a 22.5% 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 2 and has an Earnings ESP of -1.02%. 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 broader REIT sector, AvalonBay Communities, Inc. (AVB - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
Image: Bigstock
Can CBRE Group Stock Keep Its Winning Streak Alive in Q3?
Key Takeaways
CBRE Group, Inc. (CBRE - Free Report) , the global leader in real estate services, is gearing up to announce its third-quarter 2025 earnings on Oct. 23, 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 13.33%. Results reflected year-over-year revenue growth across most of its business segments except the Real Estate Investments segment. The company’s resilient businesses generated net revenue growth of 17%, surpassing the 15% increase in its transactional businesses.
Over the preceding four quarters, CBRE surpassed the Zacks Consensus Estimate on each occasion, the average beat being 9.42%. 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
In the third quarter, CBRE Group is likely to have benefited from its ongoing efforts to create a more balanced and resilient operating model, emphasizing a higher proportion of contractual and recurring revenues. The company’s broad diversification across property types, service offerings, geographies and clients, along with disciplined cost management, probably helped sustain solid performance through 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 third quarter, CBRE Group is likely to have capitalized on these favorable trends.
CBRE’s enterprise businesses’ performance may have been supported by a balanced mix of new client wins and expansions. The company experienced growth in hyperscale data centers, as well as clients in the technology, health care and industrial sectors in the second quarter. 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.
While a significant recovery may still be out of reach, a gradual but steady improvement in the Advisory Services segment is anticipated in the third 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 $9.92 billion. This suggests an increase of 9.83% year over year.
The consensus mark for total revenues from Advisory Services stands at $2.04 billion, up from nearly $2 billion in the prior quarter. Estimates for revenues from Building Operations & Experience are pegged at $5.76 billion, almost in line with the prior-quarter figure.
Before the quarterly earnings release, analysts seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s earnings per share (EPS) has moved marginally north to $1.47 over the past month. It also suggests a 22.5% 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 2 and has an Earnings ESP of -1.02%. 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 broader REIT sector, AvalonBay Communities, Inc. (AVB - Free Report) and Federal Realty Investment Trust (FRT - Free Report) , you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
AvalonBay Communities is slated to report quarterly numbers on Oct. 29. AVB has an Earnings ESP of +0.93% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Federal Realty is slated to report quarterly numbers on Oct. 31. FRT has an Earnings ESP of +0.26% and a Zacks Rank of 3 at present.