Core Insights - CBRE Group reported strong fourth-quarter earnings for 2024, exceeding analyst expectations with adjusted EPS of $2.32, a 68% increase from Q4 2023, and revenue of $10.4 billion, up 16.2% year over year [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $2.32, surpassing the expected $2.23 and increasing from $1.38 in Q4 2023, reflecting a 68.1% year-over-year growth [3] - Revenue reached $10.4 billion, exceeding the forecast of $10.29 billion and rising from $8.95 billion in Q4 2023, marking a 16.2% increase [3] - Net revenue for the quarter was $6.13 billion, up 18.3% from $5.19 billion in Q4 2023 [3] - Core EBITDA was reported at $1.09 billion, a 47.4% increase from $737 million in Q4 2023 [3] Segment Performance - The Advisory Services segment saw net revenue rise by 19.2% in Q4, with a 34.3% increase in operating profit, driven by a 15% increase in global leasing revenue, particularly in Asia-Pacific and U.S. regions [6] - The Global Workplace Solutions segment reported a 15.4% rise in revenue and an 18.5% increase in net revenue, primarily due to demand in technology and healthcare sectors [7] - The Real Estate Investments segment had mixed results, with operating profit growing over 120% due to gains in real estate development, while investment management revenue saw a modest 1% increase [8] Strategic Initiatives - CBRE has focused on strengthening its Project Management and Workplace Solutions sectors, including strategic investments in coworking office specialist Industrious [5] - The company engaged in an $800 million stock repurchase program, indicating confidence in its market positioning [9] Future Outlook - For 2025, CBRE projects Core EPS growth between $5.80 and $6.10, anticipating mid-teens growth as markets recover [10] - The company reported a free cash flow of $1.5 billion in 2024 and maintains a conservative net leverage ratio of 0.93x, indicating a strong financial position for further investment [10]

Core Insights - CBRE Group reported quarterly earnings of $2.32 per share, exceeding the Zacks Consensus Estimate of $2.21 per share, and showing a significant increase from $1.38 per share a year ago, representing an earnings surprise of 4.98% [1] - The company achieved revenues of $10.4 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.25% and up from $8.95 billion year-over-year [2] - CBRE has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The immediate price movement of CBRE's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $8.86 billion, while for the current fiscal year, the estimate is $6 on revenues of $39.6 billion [7] Industry Context - The Real Estate - Operations industry, to which CBRE belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Results - CBRE Group, Inc. announced preliminary full year 2024 revenue results for the newly created Building Operations & Experience segment[7]. Acquisitions - The Company has entered into a definitive agreement to acquire Industrious National Management Company, LLC, a leading provider of flexible office solutions[9]. Business Segments - The new Building Operations & Experience segment will include Enterprise Facilities Management, Local Facilities Management, Property Management, and Industrious[11]. - The Company's business segments for 2025 will consist of Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments[11].

Core Viewpoint - CBRE Group, Inc. is set to announce its fourth-quarter and full-year 2024 earnings on February 13, with expectations of strong performance across its business segments, driven by ongoing strategic initiatives and market demand [1][2]. Financial Performance - In the last reported quarter, CBRE achieved an earnings surprise of 13.2%, with double-digit revenue and segment operating profit growth [2]. - Over the past four quarters, CBRE has consistently surpassed the Zacks Consensus Estimate, with an average earnings beat of 14.4% [3]. - The Zacks Consensus Estimate for fourth-quarter 2024 revenues is $10.28 billion, reflecting a year-over-year increase of 14.8% [6]. - The consensus estimate for quarterly net revenues from Advisory Services is $3 billion, up from $2.57 billion year-over-year [6]. - The GWS segment's net revenues are estimated at $2.76 billion, an increase from $2.36 billion in the same quarter last year [6]. - Total revenues from Real Estate Investments are projected at $293.4 million, up from $262 million year-over-year [7]. - The earnings per share (EPS) estimate for the fourth quarter has been raised to $2.21, indicating a 60.1% increase year-over-year [7]. Growth Projections - For 2024, net revenues for the Advisory Services segment are expected to rise by 12% year-over-year [9]. - The GWS segment is projected to see a 13.7% increase in net revenues year-over-year [9]. - Total revenues from Real Estate Investments are anticipated to grow by 17.3% year-over-year [9]. - CBRE projects its 2024 core EPS to be in the range of $4.95-$5.05, with a full-year EPS estimate of $4.99, reflecting a 30% increase year-over-year [10]. Strategic Initiatives - CBRE is focusing on creating a balanced and resilient business model, transitioning to a more contractual business mix, which is expected to positively impact performance [3]. - The company is prioritizing technology investments to enhance efficiency and expand its market share, which is seen as a key factor in addressing current challenges [5]. - The increasing demand for outsourcing services is providing significant opportunities for CBRE to expand its client base and offerings, particularly in the GWS segment [4].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for CBRE Group, driven by higher revenues, with a focus on how actual results will compare to estimates impacting stock price [1][2]. Earnings Expectations - CBRE is expected to report quarterly earnings of $2.20 per share, reflecting a year-over-year increase of +59.4% [3]. - Revenues are projected to reach $10.27 billion, representing a 14.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.35% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +1.67% suggests analysts have recently become more optimistic about CBRE's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - CBRE currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, CBRE exceeded the expected earnings of $1.06 per share by delivering $1.20, resulting in a surprise of +13.21% [12]. - Over the past four quarters, CBRE has consistently beaten consensus EPS estimates [13]. Industry Comparison - Zillow, another player in the real estate operations industry, is expected to post earnings of $0.29 per share, with a year-over-year change of +45% and revenues of $540.64 million, up 14.1% [17]. - Zillow's higher Most Accurate Estimate has resulted in an Earnings ESP of 15.52%, combined with a Zacks Rank of 2, indicating a strong likelihood of beating the consensus EPS estimate [18].

Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - CBRE Group (CBRE) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] Group 2: Earnings Growth - The historical EPS growth rate for CBRE is 3.9%, but projected EPS growth for this year is 21.5%, surpassing the industry average of 19.1% [5] Group 3: Asset Utilization - CBRE has an asset utilization ratio (sales-to-total-assets ratio) of 1.46, indicating that the company generates $1.46 in sales for every dollar in assets, significantly higher than the industry average of 0.28 [6] Group 4: Sales Growth - The company's sales are expected to grow by 11.5% this year, compared to the industry average of 7.7% [7] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for CBRE have been revised upward, with the Zacks Consensus Estimate increasing by 0.7% over the past month [8] Group 6: Overall Positioning - CBRE holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [10]

Morgan Stanley analyst Ronald Kamdem upgraded CBRE Group Inc CBRE to Overweight from Equal-Weight, raising the price forecast to $160 from $115.The analyst writes the company is well-positioned for double-digit earnings growth due to its market-leading position in both stable, recurring business lines like mortgage servicing, property management, and valuation, which make up about 60% of expected 2025 EBITDA, and higher-margin cyclical business lines like leasing, capital markets, and development, accountin ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering CBRE Group (CBRE) , which belongs to the Zacks Real Estate - Operations industry.This provider of real estate investment management services has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 15.30%.For the most recent quarter, CBRE w ...

Shares of CBRE Group (CBRE) have rallied 39.4% in the past six months, outperforming its industry’s growth of 13.1%.With a wide array of real estate products and services offerings, CBRE enjoys a robust scale and is the largest commercial real estate services and investment firm (based on 2023 revenues). A healthy outsourcing business, strategic acquisitions and a solid balance sheet are expected to drive its performance.Last week, CBRE announced that it had completed the combination of its project manageme ...

Company Announcement - CBRE Group has completed the combination of its project management business with Turner & Townsend, a majority-owned subsidiary since 2021 [1] - Turner & Townsend's board chair and CEO, Vincent Clancy, has joined CBRE's board of directors [1] - Turner & Townsend's revenues have increased at a compound annual rate of more than 20% since 2021 [1] Strategic Benefits - The unified project management business is unmatched in scale and breadth of capabilities, poised to benefit from trends in infrastructure, green energy transition, and employee experience [2] - CBRE now owns 70% of the combined Turner & Townsend/CBRE Project Management business [2] - From 2025, CBRE will report Project Management results as a standalone business segment, increasing transparency for investors [2] Company Overview - CBRE Group is well-positioned to benefit from its wide range of real estate products and services [3] - The outsourcing business remains healthy with a strong pipeline, offering growth opportunities [3] - Strategic buyouts and technology investments are expected to drive performance [3] Stock Performance - CBRE's shares have rallied 48.8% over the past six months, outperforming the industry's 20.9% upside [4] Industry Comparison - Jones Lang (JLL) and Kennedy-Wilson (KW) are better-ranked stocks in the operations real estate industry, each carrying a Zacks Rank 2 (Buy) [5] - The Zacks Consensus Estimate for JLL's 2024 and 2025 EPS is $13.60 and $16.42, suggesting year-over-year growth of 83.8% and 20.7%, respectively [5] - The Zacks Consensus Estimate for KW's 2024 EPS is $3.00, indicating a significant increase from the year-ago figure, and $3.05 for 2025, suggesting 1.7% growth [7]