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What's in the Offing for CBRE Group (CBRE) in Q2 Earnings?

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CBRE Group, Inc. (CBRE - Free Report) is slated to release second-quarter 2022 earnings on Aug 4 before the bell. Results are anticipated to display year-over-year growth in revenues and earnings.

In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm delivered a 26.36% earnings surprise.

Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 35.07%. The graph below depicts this surprise history:

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. price-eps-surprise | CBRE Group, Inc. Quote

Let’s see how things have shaped up before this announcement.

Factors at Play

In the June-end quarter, CBRE Group is likely to have continued its focus on a better-balanced and more resilient business model, shifting the company’s business mix to a more contractual one. The broad diversification across property types, lines of business, geographic markets and clients and disciplined expense management are anticipated to have helped CBRE in the quarter under consideration.

The firm has grown organically and banked on strategic in-fill acquisitions to boost its service offerings and geographical reach over the years. These efforts are likely to have aided the company’s performance during the quarter under consideration.

However, macroeconomic uncertainty and an adverse impact on commercial real estate transactions are major concerns. Also, there is stiff competition from other industry players. These factors might have deterred the growth tempo to some extent.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $7.84 billion, suggesting an increase of 21.3% year over year.

The Zacks Consensus Estimate for second-quarter net revenues from Advisory Services stands at $2,430.32 million, indicating an increase from the prior quarter’s $2,230.67 million and the prior-year quarter’s $2,135.12 million.

The consensus estimate for Global Workplace Solutions’ net revenues is $1,914.80 million, suggesting growth from the previous quarter’s $1,866.49 million and the year-ago quarter’s $1,537.67 million.

Net revenues from Real Estate Investments are estimated at $291.26 million for the to-be-reported quarter, calling for an increase from the first quarter’s $283.76 million and the year-earlier period’s $243.36 million.

However, before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the April-June quarter’s earnings per share (EPS) has moved two cents south to $1.38 over the past month. However, it suggests a 1.47% year-over-year increase.

Here Is What Our Quantitative Model Predicts:

Our proven model does not conclusively predict an earnings surprise for CBRE Group this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

CBRE Group currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Upcoming Releases

It’s time to look forward to two stocks from the real estate operations industry: The RMR Group (RMR - Free Report) and RE/MAX Holdings, Inc. (RMAX - Free Report) . Both The RMR Group and RE/MAX Holdings are scheduled to report quarterly numbers on Aug 4.

The Zacks Consensus Estimate for The RMR Group’s second-quarter 2022 EPS is pegged at 59 cents, implying a year-over-year increase of 25.5%. RMR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RE/MAX Holdings’s second-quarter 2022 EPS stands at 64 cents, suggesting a year-over-year decrease of 1.59%. RMAX currently carries a Zacks Rank of 3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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