CBRE Group tops Q3 core profit expectations

By Reuters News


Overview

  • Commercial real estate services firm's Q3 revenue rose 13% but missed analyst expectations

  • Core EPS for Q3 increased 28% and beat analyst expectations

  • Company repurchased nearly $1.2 bln in shares year-to-date


Outlook

  • Company did not provide specific financial guidance for the current qtr or full yr


Result Drivers

  • INFRASTRUCTURE SERVICES - Revenue from critical infrastructure services surged 80%, driven by strong growth in data center services and contributions from Pearce Services acquisition

  • PROPERTY SALES - Global property sales revenue rose 28%, with U.S. sales up 37% due to accelerated growth in industrial and retail sectors

  • REAL ESTATE DEVELOPMENT - Operating profit in real estate development rose significantly, reflecting strong data center land sale activity and monetization of other assets


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$11.52 bln

$11.77 bln (4 Analysts)

Q3 Core EPS

Beat

$2.05

$1.97 (11 Analysts)

Q3 EPS

$1.52


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the real estate services peer group is "buy"

  • Wall Street's median 12-month price target for CBRE Group, Inc. is $181.50, about 34.8% above its October 21 closing price of $134.65

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Oct 20 - AI data center projects boost US warehouse demand and rents, real estate company JLL says

  • Oct 20 - At least 17 data center campuses proposed on US public lands, group says

  • Oct 21 - EastGroup Properties Q3 FFO per share rises 7.9% on rent increase


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.