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CBRE Group Q4 Earnings Beat Estimates, Revenues Rise

Real estate services firm, CBRE Group Inc.CBG reported fourth-quarter 2015 adjusted earnings of 81 cents per share, beating the Zacks Consensus Estimate of 79 cents and ahead of the prior-year tally of 68 cents. A rise in revenues aided the results.

Cbre Group Inc. (CBG) EPS BNRI - Last 5 Quarters | FindTheCompany

Revenues came in at $3.70 billion, up 33% year over year and surpassed the Zacks Consensus Estimate of $3.56 billion. Fee revenues were also up 18% to $2.6 billion. However, excluding the Global Workplace Solutions ("GWS") business, revenues and fee revenues climbed 11% and 10%, respectively, in local currency.

For full-year 2015, adjusted earnings came in at $2.05 per share, up from the 2014 tally of $1.68. The Zacks Consensus Estimate for 2015 is currently pegged at $2.03 per share. Revenues for 2015 came in at $10.9 billion, up from the prior-year figure of $9 billion.

Quarter in Detail

Revenues from the Americas increased 22% (23% in local currency) year over year to $2 billion during the quarter.

Revenues from the EMEA region (primarily Europe) grew 60% (69% in local currency) year over year to $1.2 billion; while that from Asia-Pacific (including Asia, Australia and New Zealand) climbed 37% (49% in local currency) to $379.5 million.

In the Global Investment Management segment, revenues totaled $142.3 million, representing an increase of 14% (22% in local currency). In the Development Services segment, revenues fell 16% to $20.3 million.

Liquidity

CBRE exited fourth-quarter 2015 with cash and cash equivalents of $540.4 million, down from $740.9 million as of Dec 31, 2014.

2016 Outlook

CBRE anticipates 2016 adjusted earnings per share in the range of $2.27-$2.37. Currently, the Zacks Consensus Estimate for 2016 is pegged at $2.30 per share.

Our Viewpoint

Going forward, we believe the company would benefit from strategic in-fill acquisitions, transformational deals, and improving leasing, property sales and outsourcing business. Yet, uncertainties in certain global economies, stiff competition and unfavorable foreign currency movements remain as concerns.

CBRE Group currently has a Zacks Rank #3 (Hold). Investors interested in the real estate industry may consider stocks like Reis, Inc. REIS , FirstService Corporation FSV and Alexander & Baldwin, Inc. ALEX . All three stocks hold a Zacks Rank #2 (Buy).

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ALEXANDR&BALDWN (ALEX): Free Stock Analysis Report

REIS INC (REIS): Free Stock Analysis Report

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FIRSTSERVICE CP (FSV): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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