The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CBRE Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins expanded, net margins expanded.
CBRE Group logged revenue of $2.01 billion. The five analysts polled by S&P Capital IQ predicted revenue of $1.87 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.76 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The six earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share. GAAP EPS of $0.52 for Q4 were 108% higher than the prior-year quarter's $0.25 per share. (The prior-year quarter included $0.10 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.6%, 30 basis points worse than the prior-year quarter. Operating margin was 11.6%, 120 basis points better than the prior-year quarter. Net margin was 8.6%, 410 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $6.91 billion. The average EPS estimate is $1.36.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBRE Group is outperform, with an average price target of $22.00.
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