We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Offing for CBRE Group (CBRE) in Q3 Earnings?
Read MoreHide Full Article
CBRE Group, Inc. (CBRE - Free Report) is slated to release third-quarter 2022 earnings on Oct 27 before the bell. While its revenues are anticipated to grow year over year, earnings might have declined from the year-ago quarter’s reported tally.
In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm delivered a 32.61% earnings surprise.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 24.63%. The graph below depicts this surprise history:
Let’s see how things have shaped up before this announcement.
Factors at Play
In the September-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.
Moreover, CBRE Group’s solid technology platform helps it develop and deliver superior analytical, research and client service tools to meet diverse client needs. Strategic reinvestment in its business, specifically on the technology front, is expected to have differentiated CBRE Group from its peers in the quarter under consideration.
However, macroeconomic uncertainty and an adverse impact on commercial real estate transactions are major concerns. The company’s performance is likely to have been affected by rising interest rates, inflationary pressure and a choppy geopolitical environment.
Particularly, investors have become more cautious, which has been affecting transaction closing time and pricing. Debt markets are not only adhering to a cautious stance but there is also an increase in underwriting requirements, affecting transaction activities.
Also, the cautious attitude of clients/corporate occupiers is causing delays in real estate decisions, thereby affecting this company’s business. Further, 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 $7.90 billion, suggesting an increase of 16.2% year over year.
The Zacks Consensus Estimate for third-quarter net revenues from Advisory Services stands at $2,485.1 million, indicating a decrease from the prior quarter’s $2,571.4 million but up from the prior-year quarter’s $2,412.0 million.
The consensus estimate for Global Workplace Solutions’ net revenues is $1,935.7 million, suggesting a decline from the previous quarter’s $1,956 million but ahead of the year-ago quarter’s $1,551.8 million.
Net revenues from Real Estate Investments are estimated at $271.7 million in the to-be-reported quarter, calling for a decrease from the second quarter’s $277.3 million but up from the year-earlier period’s $223.8 million.
However, before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s earnings per share (EPS) has moved a cent south to $1.24 over the past week. It also suggests a 10.8% decrease year over year.
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 #5 (Strong Sell) and has an Earnings ESP of -0.60%. 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 operation industry — Jones Lang LaSalle Incorporated (JLL - Free Report) and The RMR Group (RMR - Free Report) . While Jones Lang LaSalle is slated to report quarterly numbers on Nov 2, The RMR Group is scheduled to report on Nov 14.
The Zacks Consensus Estimate for Jones Lang LaSalle’s third-quarter 2022 EPS stands at $4.52, suggesting a year-over-year decrease of nearly 1%. JLL 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 The RMR Group’s third-quarter 2022 EPS is pegged at 58 cents, implying a year-over-year increase of 16.0%. RMR currently carries a Zacks Rank of 3.
Image: Bigstock
What's in the Offing for CBRE Group (CBRE) in Q3 Earnings?
CBRE Group, Inc. (CBRE - Free Report) is slated to release third-quarter 2022 earnings on Oct 27 before the bell. While its revenues are anticipated to grow year over year, earnings might have declined from the year-ago quarter’s reported tally.
In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm delivered a 32.61% earnings surprise.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 24.63%. The graph below depicts this surprise history:
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 September-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.
Moreover, CBRE Group’s solid technology platform helps it develop and deliver superior analytical, research and client service tools to meet diverse client needs. Strategic reinvestment in its business, specifically on the technology front, is expected to have differentiated CBRE Group from its peers in the quarter under consideration.
However, macroeconomic uncertainty and an adverse impact on commercial real estate transactions are major concerns. The company’s performance is likely to have been affected by rising interest rates, inflationary pressure and a choppy geopolitical environment.
Particularly, investors have become more cautious, which has been affecting transaction closing time and pricing. Debt markets are not only adhering to a cautious stance but there is also an increase in underwriting requirements, affecting transaction activities.
Also, the cautious attitude of clients/corporate occupiers is causing delays in real estate decisions, thereby affecting this company’s business. Further, 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 $7.90 billion, suggesting an increase of 16.2% year over year.
The Zacks Consensus Estimate for third-quarter net revenues from Advisory Services stands at $2,485.1 million, indicating a decrease from the prior quarter’s $2,571.4 million but up from the prior-year quarter’s $2,412.0 million.
The consensus estimate for Global Workplace Solutions’ net revenues is $1,935.7 million, suggesting a decline from the previous quarter’s $1,956 million but ahead of the year-ago quarter’s $1,551.8 million.
Net revenues from Real Estate Investments are estimated at $271.7 million in the to-be-reported quarter, calling for a decrease from the second quarter’s $277.3 million but up from the year-earlier period’s $223.8 million.
However, before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the July-September quarter’s earnings per share (EPS) has moved a cent south to $1.24 over the past week. It also suggests a 10.8% decrease year over year.
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 #5 (Strong Sell) and has an Earnings ESP of -0.60%. 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 operation industry — Jones Lang LaSalle Incorporated (JLL - Free Report) and The RMR Group (RMR - Free Report) . While Jones Lang LaSalle is slated to report quarterly numbers on Nov 2, The RMR Group is scheduled to report on Nov 14.
The Zacks Consensus Estimate for Jones Lang LaSalle’s third-quarter 2022 EPS stands at $4.52, suggesting a year-over-year decrease of nearly 1%. JLL 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 The RMR Group’s third-quarter 2022 EPS is pegged at 58 cents, implying a year-over-year increase of 16.0%. RMR currently carries a Zacks Rank of 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.