» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 214 | Thursday, November 01, 2012

CBRE Shares Fall on Weak Third-Quarter Earnings

AP

Print | Front Page | Email this story | Comments ()

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 This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 78 146 11,266
MORTGAGES 96 170 14,073
FORECLOSURE NOTICES 0 0 2,278
BUILDING PERMITS 194 340 24,374
BANKRUPTCIES 58 135 8,567
BUSINESS LICENSES 28 51 3,822
UTILITY CONNECTIONS 102 239 13,696
MARRIAGE LICENSES 14 49 3,080

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.