NEW YORK – CBRE Group, Inc. (NYSE:) reported better-than-expected third quarter results and raised its full-year outlook, sending shares up 6.4% in early trading Thursday.
The commercial real estate services firm posted adjusted earnings of $1.20 per share, surpassing analyst estimates of $1.06. Revenue rose 14.8% year-over-year to $9.04 billion, also topping expectations of $8.8 billion.
CBRE’s strong performance was driven by double-digit growth across its business segments. Global leasing revenue surged 19%, while property sales revenue increased for the first time in eight quarters. The company’s resilient business lines, including facilities management and project management, saw net revenue climb 18%.
“Our performance in the third quarter was highlighted by our second-highest third quarter core earnings per share in company history, driven by double-digit revenue and profit growth and significant operating leverage in all three business segments,” said Bob Sulentic, CBRE’s chair and CEO.
Looking ahead, CBRE raised its full-year adjusted earnings guidance to a range of $4.95 to $5.05 per share, up from its previous outlook of $4.70 to $4.90 and above the $4.82 consensus estimate.
The company generated $494 million in free cash flow during the quarter, up 61% from the prior year period. CBRE ended Q3 with a net leverage ratio of 1.26x, well below its primary debt covenant of 4.25x.
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