Valued at $43.1 billion by market cap, Dallas-based CBRE Group, Inc. (CBRE) is the global leader in commercial real estate services and investment. It provides integrated services to real estate investors and occupiers and operates through Advisory Services, Global Workplace Solutions and Real Estate Investments segments. CBRE employs 130,000+ people in its 500+ offices spread across 100+ countries around the globe.
The real estate giant is gearing up to announce its fourth-quarter results before the markets open on Thursday, Feb. 13. Ahead of the event, analysts expect CBRE to report a non-GAAP profit of $2.21 per share, up a staggering 60.1% from $1.38 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 66.7% year-over-year to $1.20, exceeding analysts' estimates by 13.2%.
For the full fiscal 2024, CBRE is expected to deliver an adjusted EPS of $4.99, up nearly 30% from $3.84 in fiscal 2023. In fiscal 2025, CBRE’s earnings are expected to increase 21.6% year-over-year to $6.07 per share.
CBRE stock has soared 59.5% over the past 52-week period, significantly outperforming the S&P 500 Index’s ($SPX) 25.5% surge and the Real Estate Select Sector SPDR Fund’s (XLRE) 5.7% gains during the same time frame.
CBRE Group’s stock prices surged 8.4% after the release of its impressive Q3 results on Oct. 24. The company achieved operational gains across the key parts of its business while continuing to advance its strategic positioning. Driven by the increase in leasing activities and property sales, CBRE delivered a robust 14.8% year-over-year growth in revenues to over $9 billion, which surpassed Wall Street’s expectations. Furthermore, the company kept its net leverage ratio (net-debt by TTM core EBITDA) well below that industry standard at 1.26x and still reported a massive 63.3% growth in adjusted net income to $369 million.
Meanwhile, Q3 marked the fourth consecutive quarter of CBRE observing an improvement in cash flow. Its free cash flow for the quarter jumped 60.9% year-over-year to $494 million.
The consensus opinion on CBRE stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 11 analysts covering the stock, eight recommend “Strong Buy,” one advises “Moderate Buy,” and two suggest a “Hold” rating. Its mean price target of $151.30 represents a notable 8.5% premium to current price levels.
