CBRE Earnings Cheat Sheet: Revenue Strengthens for Fifth Straight Quarter by Double-Digits
S&P 500 (NYSE:SPY) component CB Richard Ellis Group, Inc. (NYSE:CBG) reported its results for the second quarter. 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.
CB Richard Ellis Group Earnings Cheat Sheet for the Second Quarter
Results: Net income for CB Richard Ellis Group, Inc. rose to $61.2 million (19 cents per share) vs. $54.8 million (17 cents per share) in the same quarter a year earlier. This marks a rise of 11.7% from the year earlier quarter.
Revenue: Rose 19.5% to $1.4 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: CBG reported adjusted net income of 21 cents per share. By that measure, the company fell short of mean estimate of 24 cents per share. Analysts were expecting revenue of $1.38 billion.
Quoting Management: “We are very pleased with the strong revenue gains we recorded across the Company during the second quarter,” said Brett White, chief executive officer of CB Richard Ellis. “Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions. This performance illustrates the ability of our people and platform to drive continued business gains in a global economy that is still marked by slow, uneven growth.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.7%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 27.4% from the year earlier quarter.
From the first quarter, the company’s current liabilities fell to $1.02 billion from $1.58 billion.
Gross margin shrank 2.1 percentage points to 40%. The contraction appeared to be driven by increased costs, which rose 23.7% from the year earlier quarter while revenue rose 19.5%.
The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.
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. (NYSE:EJ), American Spectrum Realty, Inc. (AMEX:AQQ), and Walker & Dunlop, Inc. (NYSE:WD).
(Source: Xignite Financials)