CBRE Group Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CBRE Group Inc (NYSE:CBG) will unveil its latest earnings on Tuesday, October 30, 2012. CB Richard Ellis Group is a commercial real estate services firm which serves the occupiers, owners, lenders, and investors of multi-family and other commercial real estate.

CBRE Group Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 33 cents per share, a rise of 37.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 32 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 33 cents during the last month. For the year, analysts are projecting profit of $1.22 per share, a rise of 20.8% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 27 cents per share versus a mean estimate of profit of 26 cents per share.

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A Look Back: In the second quarter, profit rose 23.9% to $75.9 million (23 cents a share) from $61.2 million (19 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.6% to $1.6 billion from $1.42 billion.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose $2.91 (18.7%), from $15.58 to $18.49. It saw one of its worst periods between May 1, 2012 and May 10, 2012 when shares fell for eight straight days, dropping 11% (-$2.12) over that span. The stock price saw one of its best stretches over the last year between August 14, 2012 and August 21, 2012, when shares rose for six straight days, increasing 3.5% (+62 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.69 billion in revenue this quarter, a rise of 10.5% from the year-ago quarter. Analysts are forecasting total revenue of $6.61 billion for the year, a rise of 11.8% from last year’s revenue of $5.91 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 21.2% in the third quarter of the last fiscal year, 6.8% in the fourth quarter of the last fiscal year and 13.9% in the first quarter before increasing again in the second quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.31 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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