The 10-second takeaway
For the quarter ended June 30 (Q2), CBRE Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share contracted.
Margins contracted across the board.
CBRE Group logged revenue of $1.74 billion. The five analysts polled by S&P Capital IQ anticipated revenue of $1.73 billion on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $1.60 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 $0.31. The five earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. Non-GAAP EPS of $0.31 for Q2 were 15% higher than the prior-year quarter's $0.27 per share. GAAP EPS of $0.21 for Q2 were 8.7% lower than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.5%, 180 basis points worse than the prior-year quarter. Operating margin was 10.3%, 100 basis points worse than the prior-year quarter. Net margin was 4.0%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.76 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $7.18 billion. The average EPS estimate is $1.42.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBRE Group is outperform, with an average price target of $25.40.
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