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VOL. 127 | NO. 214 | Thursday, November 01, 2012

CBRE Shares Fall on Weak Third-Quarter Earnings

AP

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CBRE Group Inc.'s shares fell Wednesday following a disappointing third-quarter earnings report from the real estate services company.

THE SPARK: The company, formerly known as CB Richard Ellis Group, reported Tuesday that it earned $39.7 million, or 12 cents per share, for the period versus $63.8 million, or 20 cents per share, last year. On an adjusted basis, it earned 26 cents per share versus 24 in the prior year. Revenue increased 1.5 percent to $1.56 billion from $1.53 billion.

Analysts polled by FactSet were expecting the company to earn 33 cents per share on revenue of $1.7 billion.

CBRE also lowered its full-year earnings forecast from range of $1.20 to $1.25 per share to a range of $1.15 to $1.20 per share. Analysts expect $1.22 per share, on average.

THE BIG PICTURE: CBRE is a real estate firm that services those that owns, lends and invests in commercial real estate.

The company has struggled with the impact of the tough economy. CBRE said that many investors and occupiers were more cautious during the third quarter on concerns about the European debt crisis and slowing growth in Asia, as well as uncertain economic conditions in the U.S.

CBRE's CEO Brett White said that the company is not immune from these macro-economic trends and has tried to cut costs to manage its weaker business.

THE ANALYSIS: Despite the disappointing performance, William Blair & Company analyst Brandon Dobell maintained an "Outperform" rating on the company's shares, saying that the Los Angeles company is still taking market share and he believes we are in the early stages of a commercial real estate recovery.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 66 153 14,870
MORTGAGES 64 144 19,474
FORECLOSURE NOTICES 0 22 3,817
BUILDING PERMITS 217 359 35,689
BANKRUPTCIES 59 121 14,155
BUSINESS LICENSES 24 86 5,077
UTILITY CONNECTIONS 71 170 21,603
MARRIAGE LICENSES 22 59 4,616

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