The 10-second takeaway
For the quarter ended March 31 (Q1), CBRE Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins contracted, and net margins dropped.
CBRE Group logged revenue of $1.35 billion. The four analysts polled by S&P Capital IQ foresaw sales of $1.34 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.19 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 $0.14. The four earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS of $0.08 for Q1 were 27% lower than the prior-year quarter's $0.11 per share. (The prior-year quarter included $0.03 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 41.7%, 190 basis points better than the prior-year quarter. Operating margin was 6.3%, 30 basis points worse than the prior-year quarter. Net margin was 2.0%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $6.57 billion. The average EPS estimate is $1.23.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBRE Group is outperform, with an average price target of $22.40.
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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.