NYSE$CBRE

CBRE Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

CBRE's financial performance in Q2 2023 was influenced by growth in Global Workplace Solutions and resilient business lines, but was offset by weaker property sales in Advisory Services.

CBRE Group, Inc. reported financial results for the second quarter ended June 30, 2023. GAAP EPS declined 57% to $0.64 and Core EPS declined 55% to $0.82.

  • Global leasing revenue declined 16%, in-line with expectations, driven largely by the Americas where revenue fell 22%.
  • Sales revenue fell 44% due to severely constrained capital availability and a difficult comparison with second-quarter 2022.
  • Global mortgage origination revenue declined 44%, as most debt capital sources remained largely on the sidelines.
  • Facilities management net revenue rose 12%, driven largely by growth with both new and existing clients and the continued expansion of the Local business.

Headline financials

Total Revenue

$7.72B

Previous: $7.77B-0.7%
EPS (adj)

$0.82

Previous: $1.83-55.2%
Operating Margin

0.2%

Previous: 20.1%-99.2%
Mortgage Origination Growth

-44.0%

Previous: -1.0%-4300.0%
Property Sales Growth

-44.0%

Previous: 17.0%-358.8%
Leasing Revenue Growth

-16.0%

Previous: 40.0%-140.0%
Capital Expenditures

-$135M

Previous: -$96.7M-39.6%
Free Cash Flow

$66.4M

Previous: $391M-83.0%
Net Income

$201M

Previous: $487M-58.7%
Operating Income

$306M

Previous: $517M-40.7%
Gross Profit

$1.54B

Previous: $1.72B-10.3%
Cash & Equivalents

$1.26B

Previous: $1.19B+5.7%
Total Assets

$21.7B

Previous: $20.4B+6.3%
Stock-Based Comp

$20.8M

Previous: $45.5M-54.3%

Revenue & EPS history

CBRE · Revenue · Quarterly

$7.72B

Q2 2023-0.7%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

CBRE · $2.3B total across 2 segments · Q2 2023

  • Advisory Services
    $2.04B-21.1%
  • Real Estate Investments
    $256M-7.7%

Forward guidance

CBRE now expects full-year 2023 Core EPS to decline by 20 to 25% against last year’s record level, with the majority of the decrease due to the delayed capital markets recovery.

Tailwinds

  • Company continues to expect its resilient lines of business, in aggregate – consisting of the entire Global Workplace Solutions business, loan servicing, property management, valuations and the asset management component of investment management – to grow for the full year at a rate that is consistent with its expectations three months ago.
  • CBRE believes there is a reasonable path to achieving a record level of Core EPS in 2024

Headwinds

  • Full-year 2023 Core EPS to decline by 20 to 25% against last year’s record level
  • Majority of the decrease due to the delayed capital markets recovery.
  • Reaching record Core EPS in 2024 has become more difficult with the expected delay in the return of capital markets activity.

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 Q2 2023

Historical avgQ2 2023

+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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