CBRE (CBG) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Zacks Investment Research | Apr 26, 2017 10:46PM ET
CBRE Group Inc. (NYSE:CBG) reported first-quarter 2017 adjusted earnings per share of 43 cents, beating the Zacks Consensus Estimate of 33 cents. The figure also denoted a 19% increase from the prior-year quarter tally of 36 cents. Results reflect better-than-expected growth in revenues.
On a GAAP basis, earnings per share came in at 38 cents, ahead of the prior-year quarter earnings per share of 24 cents.
The company posted revenues of around $2.98 billion, outpacing the Zacks Consensus Estimate of $2.96 billion. In addition, revenues came higher than the year-ago figure of $2.85 billion.
Fee revenues were up 5% (7% in local currency) year over year to $1.9 billion. Further, excluding contributions from all acquisitions completed after first-quarter 2016, organic fee revenue advanced 4% (6% in local currency).
Quarter in Detail
CBRE Group’s largest business segment – The Americas – reported 7% rise in revenues to $1.7 billion (same in local currency), while Asia Pacific (APAC) witnessed 10% increase in revenues to $341.1 million (9% local currency), with solid growth recorded in Greater China, India and Singapore.
However, revenue growth in Europe, the Middle East & Africa (EMEA) was adversely affected by foreign currency movement, mainly the depreciation of the British pound sterling. As a result, although EMEA revenues rose 9% in local currency, the figure was flat at $844.2 million after conversion to the U.S. dollars.
In the Global Investment Management segment, revenues totaled $89.6 million, down nearly 1% (up 3% in local currency) year over year, while the Development Services segment reported revenues of $13.7 million, declining 19% year over year.
Notably, in the first quarter, the company signed 29 occupier outsourcing contracts in EMEA and APAC (combined), while 16 were signed in the global health care sector.
Liquidity
CBRE exited first-quarter 2017 with cash and cash equivalents of $533.3 million, down from $762.6 million as of Dec 31, 2016.
2017 Outlook
The company did not update the full-year guidance this time.
During its prior-quarter earnings release, the company projected adjusted earnings per share for 2017 in the range of $2.35–$2.45. The Zacks Consensus Estimate for the same is currently pegged at $2.38.
Our Viewpoint
CBRE’s extensive real estate products and services offerings, improving leasing, property sales and outsourcing business, strategic in-fill acquisitions, transformational deals, and healthy balance sheet are anticipated to drive its results. However, uneasiness in certain economies and unfavorable foreign currency movement remain concerns for the company.
CBRE Group currently carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.