CBRE Group, Inc. CBRE, the global leader in real estate services, has been gearing up to announce its fourth-quarter and full-year 2024 earnings on Feb. 13, before the opening bell. The company has been at the forefront of the industry, offering a wide range of services, including property sales and leasing, property management, valuation, project management and consulting.

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In the last reported quarter, this Dallas, TX-based commercial real estate services and investment firm reported an earnings surprise of 13.2%. Results reflected double-digit revenue and segment operating profit growth, with significant operating leverage in Advisory Services, Global Workplace Solutions (“GWS”) and Real Estate Investments business segments. The company expects a strong fourth quarter across all three segments.

Over the preceding four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 14.4%. The graph below depicts this surprise history:

CBRE Group, Inc. Price and EPS Surprise

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

Factors at Play

In the fourth quarter, CBRE Group is likely to have benefited from its ongoing emphasis on creating a more balanced and resilient business model, transitioning to a more contractual business mix. The company's diversification across property types, business lines, geographic markets and clients is expected to have contributed positively in this period.

The increasing demand for outsourcing services offers significant opportunities for CBRE to expand its client base and offerings. In the fourth quarter, CBRE Group is likely to have capitalized on these favorable trends, experiencing growth in the GWS segment. Widespread demand across clients, sectors and geographies is expected to have driven its performance.

Moreover, CBRE has been prioritizing technology investments to enhance efficiency, provide unique client services and increase market share. Embracing technology has likely helped the company address current challenges.

However, macroeconomic uncertainties continue to hurt commercial real estate transactions. Amid a volatile environment and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing.

Q4 Projections for CBRE

The Zacks Consensus Estimate for fourth-quarter 2024 revenues is currently pegged at $10.28 billion. This suggests an increase of 14.8% year over year.

The consensus estimate for quarterly net revenues from Advisory Services stands at $3 billion, which indicates a rise from the year-ago quarter’s $2.57 billion.

The consensus estimate for the GWS segment’s net revenues is pegged at $2.76 billion, which implies an increase from the year-ago quarter’s $2.36 billion.

Moreover, the consensus estimate for total revenues from Real Estate Investments stands at $293.4 million, which indicates a rise from the year-ago quarter’s $262 million.

Before the quarterly earnings release, analysts seem optimistic about the company’s prospects as the Zacks Consensus Estimate for the October-December quarter’s earnings per share (EPS) has been raised a cent upward to $2.21 in the past week. It also suggests a 60.1% increase year over year.

2024 Projections for CBRE

For 2024, we estimate net revenues for the Advisory Services segment to rise 12% year over year. Our estimate for 2024 net revenues for the GWS segment indicates an increase of 13.7% year over year. Moreover, we expect total revenues from Real Estate Investments to increase 17.3% year over year.

CBRE projects its 2024 core EPS in the range of $4.95-$5.05. For the full year, the Zacks Consensus Estimate for EPS has been revised 3 cents upward in the past two months to $4.99. The figure indicates a 30% increase year over year, while revenues are projected to grow 11.6% year over year to $35.64 billion.

What Our Quantitative Model Predicts

Our proven model predicts a likely 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, which is the case here.

CBRE Group currently has an Earnings ESP of +1.81% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a Look

Here are two other stocks from the real estate operations industry — Jones Lang LaSalle JLL and Cushman & Wakefield plc CWK — 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.

Jones Lang is slated to report quarterly numbers on Feb. 19. JLL has an Earnings ESP of +0.02% and a Zacks Rank of 2 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cushman & Wakefield is scheduled to report quarterly numbers on Feb. 20. CWK has an Earnings ESP of +7.14% and a Zacks Rank of 3 presently.

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

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

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