NYSE$CBRE

CBRE Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CBRE's financial performance for Q1 2024 was reported, with core earnings exceeding expectations due to solid net revenue growth, particularly in leasing, while property sales were impacted by persistent inflation and high interest rates. Actions have been initiated to align costs with revenue trajectory in the Global Workplace Solutions segment.

CBRE Group, Inc. reported financial results for the first quarter ended March 31, 2024. GAAP EPS was up 10% to $0.41, while Core EPS was down 15% to $0.78. Revenue increased by 7.1% to $7,935 million. The company expects to generate core earnings per share in the range of $4.25 to $4.65 in 2024.

  • Global leasing revenue rose 4%, driven by office leasing growth.
  • Global sales revenue declined 11% due to high interest rates and tight credit conditions, except in EMEA where sales revenue increased by 8%.
  • Mortgage origination revenue jumped 34% due to higher loan fees and interest earnings on escrow balances.
  • Global Workplace Solutions segment delivered double-digit net revenue growth, but margins fell short of expectations.

Headline financials

Total Revenue

$7.94B

Previous: $7.41B+7.1%
EPS

$0.41

Previous: $0.92-55.4%
Capital Expenditures

-$59M

Previous: -$60.3M+2.1%
Free Cash Flow

$67M

Previous: $56.6M+18.4%
Net Income

$126M

Previous: $117M+7.8%
Operating Income

$204M

Previous: $37.4M+446.0%
Gross Profit

$1.46B

Previous: $1.4B+3.9%
Cash & Equivalents

$1.04B

Previous: $1.23B-15.2%
Total Assets

$23B

Previous: $21B+9.2%
Stock-Based Comp

$30M

Previous: $18M+66.7%

Revenue & EPS history

CBRE · Revenue · Quarterly

$7.94B

Q1 2024+7.1%vs Q1 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

CBRE · $2.22B total across 2 segments · Q3 2023

  • Advisory Services
    $2.01B-17.3%
  • Real Estate Investments
    $210M-18.6%

Forward guidance

CBRE expects to generate core earnings per share in the range of $4.25 to $4.65 in 2024.

Tailwinds

  • Resilient Businesses’ continued strong performance
  • Rapid actions on costs
  • Advisory Segment remains on track to achieve its growth target
  • Global leasing revenue rose 4% (same local currency), exceeding expectations.
  • Even with a second consecutive quarter of very strong business wins, the pipeline remained elevated.

Headwinds

  • Persistent inflation kept interest rates higher than expected, which led to underperformance in our property sales transaction activity.
  • Margins fell short of expectations in Global Workplace Solutions.
  • Weak operating leverage in the quarter reflected certain one-time expenses, including higher-than- anticipated medical claims, and increased costs, which the company is now focused on substantially reducing.
  • Sales activity remained under pressure from high interest rates and tight credit conditions.
  • Non-core operating loss totaled $71 million, primarily due to the lower value of the company’s investment in Altus Power, Inc.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.3%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.9%

Avg return

30 days after

59%

41 / 69 earnings

Positive

+14.8%

Q3 2020

Best reaction

-8.8%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-4.3%-14.5%
Q4 2025-8.8%-5.5%-10.5%
Q3 2025+0.1%-2.6%-4.3%
Q2 2025+7.8%+5.0%+10.5%
Q1 2025+0.8%-0.2%-0.8%
Q4 2024+1.8%+2.2%-10.7%
Q3 2024+7.7%+6.3%+10.0%
Q2 2024+12.5%+13.9%+19.1%
Q1 2024-0.5%-0.3%+1.5%
Q4 2023+7.2%+4.7%+7.3%
Q3 2023+1.6%+5.6%+18.9%
Q2 2023-6.7%-6.1%-6.5%
Q1 2023+9.6%+7.4%+8.0%
Q4 2022-1.1%-0.9%-19.9%
Q3 2022-2.6%+0.2%+6.4%
Q2 2022+0.4%-0.3%-7.7%
Q1 2022-5.1%-8.2%-6.6%
Q4 2021+2.7%-0.5%-6.0%
Q3 2021+0.5%-1.4%-5.2%
Q2 2021+6.0%+5.7%+5.1%
Q1 2021+3.1%+3.4%+6.2%
Q4 2020+2.6%+0.7%+1.6%
Q3 2020+14.8%+18.2%+39.2%
Q2 2020-4.4%-1.0%+10.6%
Q1 2020+9.0%-2.5%+41.6%
Q4 2019-1.4%+1.4%-31.1%
Q3 2019-1.9%-0.7%+5.3%
Q2 2019+0.9%-2.7%-1.4%
Q1 2019-2.8%-3.8%-1.5%
Q4 2018+3.4%+4.6%+5.9%
Q3 2018+3.6%+6.3%+8.4%
Q2 2018-0.7%-0.5%-2.1%
Q1 2018+0.3%+1.0%+0.6%
Q4 2017-1.5%+3.8%+11.9%
Q3 2017+3.9%+4.6%+10.2%
Q2 2017-1.9%-1.6%-7.8%
Q1 2017+3.6%+4.1%-0.5%
Q4 2016+9.2%+12.3%+15.3%
Q3 2016-6.7%-7.0%+5.8%
Q2 2016-1.4%-1.9%+2.7%
Q1 2016-3.2%
Q4 2015+0.3%
Q3 2015+8.9%
Q2 2015-0.4%
Q1 2015-0.8%
Q4 2014+3.3%
Q3 2014+1.3%
Q2 2014-4.0%
Q1 2014+9.9%
Q4 2013-3.5%
Q3 2013+0.3%
Q2 2013-2.4%
Q1 2013-1.7%
Q4 2012+8.7%
Q3 2012-1.3%
Q2 2012+2.6%
Q1 2012+3.7%
Q4 2011+3.1%
Q3 2011-5.8%
Q2 2011+1.0%
Q1 2010-2.7%
Q1 2011+2.4%
Q4 2008-1.8%
Q4 2010-1.8%
Q3 2009+1.5%
Q3 2010+1.5%
Q2 2009+1.8%
Q2 2010+1.8%
Q4 2009+1.8%

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