Updated Research Report on CBRE Group - Analyst Blog
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 Pacific results.
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 FirstService Corporation ( FSRV ), Jones Lang LaSalle Incorporated ( JLL ) and NorthStar Realty Finance Corp. ( NRF ). All three stocks have a Zacks Rank #2 (Buy).
CBRE GROUP INC (CBG): Free Stock Analysis Report
FIRSTSERVICE CP (FSRV): Free Stock Analysis Report
JONES LANG LASL (JLL): Free Stock Analysis Report
NORTHSTAR RLTY (NRF): Free Stock Analysis Report
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