A month has gone by since the last earnings report for CBRE Group, Inc.CBRE . Shares have added about 1.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is CBRE due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CBRE Group Q1 Earnings Beat on Global Regions Growth
CBRE Group reported first-quarter 2018 adjusted earnings per share of 54 cents, beating the Zacks Consensus Estimate of 49 cents. The figure also marked a 20% increase from the prior-year quarter tally of 45 cents.
Results indicate strong revenue growth across all three of its global regions. Specifically, the company experienced impressive growth in global occupier outsourcing, capital markets and APAC business.
On a GAAP basis, earnings per share came in at 44 cents compared with the prior-year quarter tally of 40 cents.
The company posted revenues of around $4.67 billion, which beat the Zacks Consensus Estimate of $3.34 billion. It also compared favorably with the year-ago tally of $4.05 billion. Moreover, fee revenues were up 18% (13% in local currency) year over year to $2.3 billion.
Global occupier outsourcing revenues increased 16% (12% local currency) from the prior-year quarter, with solid growth in India, the United States, and a number of continental European countries. In addition, capital markets businesses, which include property sales and commercial mortgage origination, reported combined revenue increase of 17% (14% local currency).
Quarter in Detail
CBRE Group's largest business segment - The Americas - reported 8% rise (same in local currency) in revenues from the prior-year quarter to around $2.9 billion, registering growth in Canada, Mexico and the United States. APAC witnessed revenue growth of 23% (17% local currency) from the prior-year quarter to $495.5 million, with healthy growth in India and Japan.
Revenues from the Europe, the Middle East & Africa (EMEA) segment rose 31% (16% in local currency) to nearly $1.2 billion, supported by encouraging performance in France, Italy, the Netherlands and the U.K.
In the Global Investment Management segment, revenues totaled $123.7 million, up 38% year over year (30% in local currency), while the Development Services segment posted revenues of $23.3 million, up 64% year over year.
CBRE Group exited first-quarter 2018 with cash and cash equivalents of $642.9 million, down from $751.8 million as of Dec 31, 2017.
Management stated that the company is "tracking slightly ahead" of its full-year 2018 guidance. Previously, CBRE Group had projected 2018 adjusted earnings per share in the band of $3.00-$ 3.15, marking a projected increase of 13% at the mid-point.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There have been two revisions higher for the current quarter compared to two lower.
CBRE Group, Inc. Price and Consensus
At this time, CBRE has a subpar Growth Score of D, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than value investors.
CBRE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.