CBRE Group has raised its full-year guidance, after beating estimates for earnings per share and revenue last quarter.
Earnings per share were US$1.19, up from $0.81 one year ago and passing Zacks estimates of $1.05. Revenue was $9.75 billion, driven by growth across most segments, rising 16.2% year-over-year and above estimates by 4.14%.
“The strong momentum we exhibited to start the year continued in the second quarter. Despite uncertainty in the macro environment, occupier and investor clients largely proceeded with executing their plans,” said CBRE CEO Bob Sulentic.
“In light of our outperformance in the year’s first half and the pipelines across our business,” Sulentic said, “we have increased our earnings outlook for the year and expect to set a new peak just two years after the 2023 trough in the commercial real estate downturn. We anticipate this outcome even though capital markets activity remains well below prior peak levels.”
GAAP net income was US$215 million, rising 65% year-on-year. EBITDA was also up 30% to $658 million.
Its Advisory Services segment reported US$2.00 billion in revenue, up 14.4% year-over-year. Global leasing revenues grew by 14% globally, with Europe, the Middle East, and Africa leading regional increases at 18%.
Building Operations & Experience revenue rose by 18.7% to US$5.76 billion, while Project Management revenue was up 14.3% to $1.79 billion.
Real Estate Investments was the only major segment to post a decline in revenue, dropping 7.3% to $215 million.
The company has raised its full-year guidance to project earnings per share of US$6.10-6.20, above its previous outlook of $5.80-6.10. Its forecast otherwise would have increased by around $0.10 based on foreign exchange forward curves, CBRE said.
CBRE’s (NYSE: CBRE) share price closed at US$158.05, up 7.8% from its previous close at $146.56. Its market capitalisation is $47.12 billion.
