CBRE Group Earnings: Here’s Why Shares are Down Now

CBRE Group, Inc. (NYSE:CBG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.32%.

CBRE Group Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.81% to $0.31 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 8.8% to $1.74 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CBRE Group reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.34. It beat the average revenue estimate of $1.73 billion.

Quoting Management: “During the quarter, CBRE benefited from our balanced business mix and focus on serving our clients,” said Robert Sulentic, the Company’s president and chief executive officer. “Revenue grew solidly overall with meaningful improvement in all three geographic regions and continued strength in our global capital markets and occupier outsourcing businesses. This performance is especially noteworthy in light of continued weak global economic growth and heightened financial market volatility late in the quarter. In addition, as previously discussed, we also made significant incremental investments in our platform, which are designed to support future growth and better serve our clients.”

Key Stats (on next page)…

Revenue increased 18.1% from $1.48 billion in the previous quarter. EPS increased 93.75% from $0.16 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.33 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $1.43 to a profit of $1.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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