The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CBRE Group missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.
Margins shrank across the board.
CBRE Group logged revenue of $1.76 billion. The six analysts polled by S&P Capital IQ foresaw revenue of $1.86 billion. Sales were 6.8% higher than the prior-year quarter's $1.65 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.46. The six earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share on the same basis. GAAP EPS of $0.33 for Q4 were 10% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 42.8%, 80 basis points worse than the prior-year quarter. Operating margin was 6.5%, 520 basis points worse than the prior-year quarter. Net margin was 4.5%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $6.63 billion. The average EPS estimate is $1.31.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBRE Group is outperform, with an average price target of $21.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.