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September 01, 2020 1:43pm
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What To Expect From CBRE’s (CBRE) Q3 Earnings

CBRE Cover Image

Commercial real estate firm CBRE (NYSE:CBRE) will be announcing earnings results tomorrow before the bell. Here’s what to look for.

CBRE met analysts’ revenue expectations last quarter, reporting revenues of $8.39 billion, up 8.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.

Is CBRE a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting CBRE’s revenue to grow 11.8% year on year to $8.80 billion, improving from the 4.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.

CBRE Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CBRE has missed Wall Street’s revenue estimates twice over the last two years.

Looking at CBRE’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.

Read our full analysis of Nike’s results here and Scholastic’s results here.

Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. CBRE’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $123.60 (compared to the current share price of $122.73).

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