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What's in the Offing for CBRE Group's (CBRE) Q2 Earnings?

CBRE Group, Inc. CBRE is slated to release second-quarter 2021 earnings on Jul 29, before the bell. Results are anticipated to display year-over-year growth in revenues and earnings.

In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm delivered a 22.86% earnings surprise. Despite the pandemic’s adverse impact on property leasing and sales, quarterly results highlighted benefits from diversifying and expanding its resilient business in recent years.

Over the preceding four quarters, the company surpassed estimates on each occasion, the average beat being 39.12%. The graph below depicts this surprise history:

CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. Price and EPS Surprise
CBRE Group, Inc. Price and EPS Surprise

CBRE Group, Inc. price-eps-surprise | CBRE Group, Inc. Quote

Let’s see how things have shaped up prior to this announcement.

Factors at Play

CBRE Group is likely to have continued its focus for a better-balanced and more resilient business model during the June-end quarter, shifting the company’s business mix toward a more contractual one. Moreover, the company has made efforts in recent years to strengthen its Global Workplace Solutions (GWS) segment, which provides a broad suite of integrated, contractually-based services to occupiers of real estate, including facilities management, project management, transaction management and management consulting.

The firm has grown organically and banked on strategic in-fill acquisitions to boost its service offerings and geographical reach over the years. Strategic investments in the company’s business, specifically on the technology front, also differentiate CBRE Group from its peers.

These efforts are likely to have aided the company’s performance during the quarter under consideration. Broad diversification across property types, lines of business, geographic markets and clients as well as disciplined expense management are anticipated to have helped the company sail through the tepid environment.

The Zacks Consensus Estimate for quarterly revenues is currently pegged at $6.05 billion, suggesting an increase of 12.4% year on year.

The Zacks Consensus Estimate for second-quarter fee revenues from Advisory Services is currently pinned at $1,774 million, indicating a jump from the prior quarter’s $1,689 million, and the prior-year quarter’s $1,339 million.

The estimate for GWS’ fee revenues is $1,478 million, suggesting growth from the previous quarter’s $1,465 million and the year-ago quarter’s $755 million.

Fee revenues from Real Estate Investments are estimated at $241 million for the to-be-reported quarter, calling for an increase from the first quarter’s $211 million as well as the year-earlier period’s $162 million.

Prior to the quarterly earnings release, analysts seem to be optimistic about the company’s prospects as the Zacks Consensus Estimate for the April-June quarter earnings per share moved 5.4% north to 78 cents over the past week. It also suggests a significant year-over year improvement from 35 cents.

Here is what our quantitative model predicts:

Our proven model predicts an earnings surprise for CBRE Group this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CBRE Group currently carries a Zacks Rank #2 and has an Earnings ESP of +0.43%.

Other Stocks to Consider

Here are a few other stocks in the broader real estate sector that you may want to consider, as our model shows that these too have the right combination of elements to report a surprise this quarter:

Cushman & Wakefield plc CWK, set to report quarterly numbers on Aug 5, currently has an Earnings ESP of +21.68% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Digital Realty Trust, Inc. DLR, scheduled to report quarterly numbers on Jul 29, currently has an Earnings ESP of +0.63% and carries a Zacks Rank of 3.

Public Storage PSA, slated to announce second-quarter results on Aug 3, currently has an Earnings ESP of +0.89% and carries a Zacks Rank of 3.


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Public Storage (PSA) : Free Stock Analysis Report

Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report

CBRE Group, Inc. (CBRE) : Free Stock Analysis Report

Cushman & Wakefield PLC (CWK) : Free Stock Analysis Report

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