NYSE$CBRE

CBRE Group Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

CBRE reported a significant decline in GAAP net income and EPS, but slightly exceeded core earnings estimates due to resilient outsourcing and project management sectors, while transactional revenue declined more than expected.

CBRE Group, Inc. reported financial results for the fourth quarter and year ended December 31, 2022. Although core earnings declined significantly in the fourth quarter, they slightly exceeded the estimate provided last quarter. For all of 2022, CBRE achieved a solid, 7% growth rate in core earnings-per-share despite the more than doubling of long-term interest rates, sharp equity market decline and the credit crunch that constrained investment activity for most of the second half.

  • Global leasing revenue declined 7% (3% local currency), driven by the Americas.
  • Global sales revenue fell 47% (44% local currency) due to a highly constrained capital environment.
  • GWS revenue increased 7% (13% local currency), excluding revenue from Turner & Townsend.
  • Assets Under Management (AUM) increased $5.4 billion from third-quarter 2022 to $149.3 billion, a record high for the company.

Headline financials

Total Revenue

$8.19B

Previous: $8.55B-4.2%
EPS (adj)

$1.33

Previous: $2.19-39.3%
Operating Margin

19.3%

Previous: 22.4%-13.8%
Advisory SOP

$501M

Previous: $744M-32.8%
REI SOP

$17.2M

Previous: $156M-89.0%
Capital Expenditures

$99.1M

Previous: $88.4M+12.1%
Free Cash Flow

$715M

Previous: $1.08B-33.6%
Net Income

$86.1M

Previous: $693M-87.6%
Operating Income

$244M

Previous: $592M-58.9%
Gross Profit

$1.7B

Previous: $1.97B-13.7%
Cash & Equivalents

$1.32B

Previous: $2.43B-45.8%
Total Assets

$20.5B

Previous: $22.1B-7.1%
Stock-Based Comp

$36.5M

Previous: $185M-80.3%

Revenue & EPS history

CBRE · Revenue · Quarterly

$8.19B

Q4 2022-4.2%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

CBRE · $2.9B total across 2 segments · Q4 2022

  • Advisory Services
    $2.61B-21.3%
  • Real Estate Investments
    $291M-29.6%

Forward guidance

For 2023, CBRE expects core earnings-per-share to decline by low- to mid-double digits, but still to be the third-highest in CBRE’s history. While the macro environment can certainly change, CBRE expects core earnings-per-share to grow strongly in 2024, exceeding the 2022 peak and reaching a record level in just the first year after a recession.

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 Q4 2022

Historical avgQ4 2022

+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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