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What's in the Offing for CBRE Group (CBRE) in Q4 Earnings?
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CBRE Group, Inc. (CBRE - Free Report) is slated to release fourth-quarter and full-year 2022 earnings on Feb 23 before the bell. Both its revenues and earnings might have declined from the year-ago quarter’s reported numbers.
In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm reported a negative earnings surprise of 8.87%. The quarterly results reflected lower-than-expected revenues amid the weakening of the macro environment, particularly the deterioration of the capital market environment.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average beat being 18.46%. The graph below depicts this surprise history:
Let’s see how things have shaped up before this announcement.
Factors at Play
In the fourth 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. 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. Capital market conditions have remained challenging. The company’s performance is likely to have been affected by rising interest rates, inflationary pressure and a choppy geopolitical environment.
Investors have become more cautious, which has been affecting the 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. 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 $8.13 billion, suggesting a decrease of 4.93% year over year.
The Zacks Consensus Estimate for fourth-quarter net revenues from Advisory Services stands at $2,612.37 million, indicating a decline from the prior-year quarter’s $3,318.60 million. However, the consensus estimate for Global Workplace Solutions’ (GWS) net revenues is pegged at $2,070.40 million, ahead of the year-ago quarter’s $1,855.40 million.
Net revenues from Real Estate Investments are estimated at $263.34 million in the to-be-reported quarter. This calls for a decrease from the year-earlier period’s $413.40 million.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the October-December quarter’s earnings per share (EPS) has moved three cents south to $1.19 over the past month. It suggests a 45.7% decline year over year.
For the full-year 2022, CBRE Group expected core EPS growth of mid-single digits. For the GWS segment, the company expected segment operating profit growth of a low-to-mid-20% range, with strong performance through the third quarter, which is expected to continue in the fourth quarter.
For the full year, the Zacks Consensus Estimate for the core EPS is pegged at $5.54. The figure indicates a 4.48% decrease year over year. However, revenues are expected to report growth of 10.87% year over year to $30.76 billion.
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 -0.63%. 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 Cushman & Wakefield plc (CWK - Free Report) . While Jones Lang LaSalle is slated to report quarterly numbers on Feb 28, Cushman & Wakefield is scheduled to report on Feb 23.
The Zacks Consensus Estimate for Jones Lang LaSalle’s fourth-quarter 2022 EPS stands at $4.47, suggesting a year-over-year decrease of 48.4%. JLL currently carries a Zacks Rank of 5 (Strong Sell).
The Zacks Consensus Estimate for Cushman & Wakefield’s fourth-quarter 2022 EPS is pegged at 46 cents, implying a year-over-year decrease of 51.06%. CWK currently carries a Zacks Rank of 5.
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What's in the Offing for CBRE Group (CBRE) in Q4 Earnings?
CBRE Group, Inc. (CBRE - Free Report) is slated to release fourth-quarter and full-year 2022 earnings on Feb 23 before the bell. Both its revenues and earnings might have declined from the year-ago quarter’s reported numbers.
In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm reported a negative earnings surprise of 8.87%. The quarterly results reflected lower-than-expected revenues amid the weakening of the macro environment, particularly the deterioration of the capital market environment.
Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on three occasions and missed on the other, the average beat being 18.46%. 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 fourth 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. 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. Capital market conditions have remained challenging. The company’s performance is likely to have been affected by rising interest rates, inflationary pressure and a choppy geopolitical environment.
Investors have become more cautious, which has been affecting the 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. 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 $8.13 billion, suggesting a decrease of 4.93% year over year.
The Zacks Consensus Estimate for fourth-quarter net revenues from Advisory Services stands at $2,612.37 million, indicating a decline from the prior-year quarter’s $3,318.60 million. However, the consensus estimate for Global Workplace Solutions’ (GWS) net revenues is pegged at $2,070.40 million, ahead of the year-ago quarter’s $1,855.40 million.
Net revenues from Real Estate Investments are estimated at $263.34 million in the to-be-reported quarter. This calls for a decrease from the year-earlier period’s $413.40 million.
Before the quarterly earnings release, analysts do not seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the October-December quarter’s earnings per share (EPS) has moved three cents south to $1.19 over the past month. It suggests a 45.7% decline year over year.
For the full-year 2022, CBRE Group expected core EPS growth of mid-single digits. For the GWS segment, the company expected segment operating profit growth of a low-to-mid-20% range, with strong performance through the third quarter, which is expected to continue in the fourth quarter.
For the full year, the Zacks Consensus Estimate for the core EPS is pegged at $5.54. The figure indicates a 4.48% decrease year over year. However, revenues are expected to report growth of 10.87% year over year to $30.76 billion.
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 -0.63%. 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 Cushman & Wakefield plc (CWK - Free Report) . While Jones Lang LaSalle is slated to report quarterly numbers on Feb 28, Cushman & Wakefield is scheduled to report on Feb 23.
The Zacks Consensus Estimate for Jones Lang LaSalle’s fourth-quarter 2022 EPS stands at $4.47, suggesting a year-over-year decrease of 48.4%. JLL currently carries a Zacks Rank of 5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cushman & Wakefield’s fourth-quarter 2022 EPS is pegged at 46 cents, implying a year-over-year decrease of 51.06%. CWK currently carries a Zacks Rank of 5.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.