CB Richard Ellis Group Earnings: Real Estate Revenues Still Weak

S&P 500 (NYSE:SPY) component CB Richard Ellis Group, Inc. (NYSE:CBG) swung to a profit in the first quarter, but still came up short of analyst expectations. CB Richard Ellis Group, Inc. is a commercial real estate services firm which serves the occupiers, owners, lenders and investors of multi-family and other commercial real estate.

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CB Richard Ellis Group Earnings Cheat Sheet for the First Quarter

Results: Swung to a profit of $34.4 million (11 cents/diluted share) in the quarter. The CB Richard Ellis Group, Inc. had a net loss of $6.6 million or a loss 2 cents per share in the year earlier quarter.

Revenue: Rose 15.5% to $1.19 billion YoY.

Actual vs. Wall St. Expectations: CBG fell short of the mean analyst estimate of 12 cents/share. Estimates ranged from 9 cents per share to 18 cents per share.

Quoting Management: “Our results for the quarter reflect a very nice start for the year, with earnings per share and normalized EBITDA showing exceptional growth. This is particularly significant because the first quarter typically sets the tone for the rest of the year and historically is our seasonally weakest quarter,” said Brett White, CB Richard Ellis’ chief executive officer. “We are also pleased to have delivered strong EBITDA growth versus last year and to have achieved a double-digit normalized EBITDA margin.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.9%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 27.4% from the year earlier quarter.

Competitors to Watch: Jones Lang LaSalle Inc. (NYSE:JLL), Grubb & Ellis Company (NYSE:GBE), Kennedy-Wilson Hldgs., Inc. (NYSE:KW), HFF, Inc. (NYSE:HF), General Electric Company (NYSE:GE), E-House (NASDAQ:CHINA) Hldgs. Ltd. (ADR) (NYSE:EJ), American Spectrum Realty, Inc. (AMEX:AQQ), and Walker & Dunlop, Inc. (NYSE:WD).

Today’s Performance: Shares of CBG are down 2% in after hours trading.

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