On Feb 28, 2014, we issued an updated research report on
CBRE Group Inc.
). CBRE's fourth-quarter 2013 adjusted earnings came in at 67
cents per share, a penny ahead of the Zacks Consensus Estimate
and up 22% year over year. Quarterly results were driven by
strong contribution from the global investment management and
property sales, improved leasing momentum and strength in the
occupier outsourcing business.
Yet, commercial mortgage brokerage revenues continued to decline
owing to the negative impact of the U.S. Government-Sponsored
Enterprises' (GSEs) initiatives to scale back lending activity.
Moreover, unfavorable foreign currency movement affected its Asia
Going forward, we believe that apart from the regulatory limits
on GSEs lending, which is anticipated to continue to pressurize
revenue and profits for the commercial mortgage brokerage
business, the slowdown of economic growth in Asia-Pacific as well
as the upheavals in emerging economies would continue to remain a
concern for CBRE.
Moreover, the strategic investments in IT and headcounts, which
stands good for the long term, would somewhat erode a part of
margin improvement in the near term.
Despite an earnings beat (though by a penny), analysts turned
more bearish on the stock's future performance. This is evident
from the movement witnessed in the Zacks Consensus Estimate that
decreased 6.5% to $1.59 per share for 2014 and 4.2% to $1.82 per
share for 2015, over the past 30 days.
CBRE currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Some better-ranked major regional banks include
Jones Lang LaSalle Incorporated
NorthStar Realty Finance Corp.
). All three stocks have a Zacks Rank #2 (Buy).
CBRE GROUP INC (CBG): Free Stock Analysis
FIRSTSERVICE CP (FSRV): Free Stock Analysis
JONES LANG LASL (JLL): Free Stock Analysis
NORTHSTAR RLTY (NRF): Free Stock Analysis
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