- CBRE reported fourth-quarter revenue of $10.40 billion, exceeding estimates of $10.26 billion and marking a 16% increase versus the previous year.
- Advisory revenue reached $3.09 billion, growing 19% year-over-year, surpassing estimates of $2.97 billion.
- Global Workplace Solutions contributed $7.04 billion in revenue, a 15% rise from the prior year, beating expectations of $6.85 billion.
- Real Estate Investments revenue was below estimates, at $275 million, reflecting a 5% increase year-over-year, yet failing to meet the $295.2 million estimate.
- Advisory Operating Income was $576 million, showing a 36% growth from last year, with the estimate close at $579.5 million.
- Global Workplace Solutions posted an operating income of $272 million, a 21% year-over-year increase, exceeding the $268.2 million forecast.
- Real Estate Investments reported an operating income of $63 million, a significant increase from $14 million the previous year, against estimates of a $14.7 million loss.
- Adjusted core earnings per share (EPS) was $2.32, up from $1.38 last year and exceeding the estimate of $2.23.
- CBRE aims for a 2025 core EPS between $5.80 to $6.10, implying growth in the mid-teens at the midpoint.
- The company believes its market valuation does not fully reflect its growth potential and enhanced resiliency, despite shares appreciating significantly over the last year.
- CBRE showed confidence in its future by repurchasing shares worth more than $800 million since the end of the third quarter.
- Analyst recommendations include 9 buys, 3 holds, and 1 sell.
CBRE Group on Smartkarma
Analysts covering CBRE Group on Smartkarma, such as Value Investors Club, view the company positively. According to Value Investors Club‘s report titled “Cbre Group Inc (CBRE) – Sunday, Jun 23, 2024,” CBRE is seen as a dominant player in global real estate markets with significant potential for earnings. The analysts highlight CBRE’s low valuation compared to its earnings potential, as well as the success of management in shifting focus towards recurring revenue streams and maintaining a diversified portfolio. Despite facing current challenges, CBRE’s strong business model and growth prospects are noted as key reasons why it is considered an attractive investment opportunity.
A look at CBRE Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
CBRE Group’s long-term outlook appears promising based on the Smartkarma Smart Scores. With a Momentum score of 4, the company is displaying strong upward momentum in various aspects of its operations. This indicates a positive trend that could attract investors looking for companies with potential for growth.
Additionally, CBRE Group scores well in Growth and Resilience with scores of 3 each. This suggests that the company is positioned for meaningful growth opportunities and has the capability to weather economic uncertainties. While the Value and Dividend scores are lower, at 2 and 1 respectively, the overall outlook for CBRE Group seems optimistic, especially for investors seeking companies with strong growth potential and resilience in the long run.
Summary of CBRE Group, Inc.: CBRE Group, Inc. provides real estate services including property management, valuation, real estate investment, and advisory services. The company operates in various sectors such as offices, data centers, multi-family, hotels, gaming, and retail, serving customers globally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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