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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 benefit from outsourcing demand and solid leasing activity in Q2.
  • Advisory Services, BOE and Project Management are anticipated to show improvement in the quarter.
  • Q2 revenue are expected to rise 14.47% year over year to $11.17 billion.

CBRE Group, Inc. (CBRE - Free Report) , the global leader in real estate services, is set to announce its second-quarter 2026 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 42.5%. Results reflected year-over-year revenue growth across most of its business segments except the Real Estate Investments segment.

Over the preceding four quarters, CBRE surpassed the Zacks Consensus Estimate on each occasion, the average beat being 16.99%. The graph below depicts this surprising history:

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. price-eps-surprise | CBRE Group, Inc. Quote

 

CBRE: Factors at Play

In the second 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 revenues. The company’s broad diversification across property types, service offerings, geographies and clients, along with disciplined cost management, probably helped sustain solid performance throughout 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 also likely to have capitalized on these favorable trends.

The company is expected to have benefited from the solid leasing business. An improvement in the Advisory Services, Building Operations & Experience (BOE) and Project Management segments is anticipated in the to-be-reported quarter.

Ongoing macroeconomic uncertainty continues to weigh on commercial real estate transaction activity. A competitive landscape and foreign currency fluctuations remain concerns.

Projections for CBRE

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $11.17 billion, suggesting an increase of 14.47% year over year.

The consensus mark for total revenues from the Advisory Services segment is pinned at $2.20 billion, up from nearly $2.00 billion in the prior-year quarter. Estimates for revenues from the BOE segment are pegged at $6.77 billion, up from $5.76 billion reported in the previous year.

The consensus mark for revenues from the Project Management segment is pinned at $1.92 billion, up from $847 million in the prior-year quarter.

Before the quarterly earnings release, the Zacks Consensus Estimate for the April-June quarter’s earnings per share (EPS) has remained unchanged at $1.49 over the past three months. It suggests a 25.2% increase year over year.

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 -1.84%. 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, Newmark Group (NMRK - Free Report) and Cushman & Wakefield (CWK - Free Report) , you may want to consider, as our model shows that these have the right combination of elements to report an EPS beat this quarter.

Newmark is slated to report quarterly numbers on July 29. NMRK has an Earnings ESP of +14.29% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cushman & Wakefield is slated to report quarterly numbers on Aug. 5. CWK has an Earnings ESP of +4.23% and a Zacks Rank of 2 at present.

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