CB Richard Ellis Group, Inc. (CBG), a commercial real estate investment firm, is scheduled to report its fiscal 2011 first quarter earnings after the closing bell on April 26, 2011. The current Zacks Consensus Estimate for the first quarter is 12 cents per share, representing significant year-over-year growth.
Fourth Quarter Recap
CB Richard Ellis reported fourth-quarter 2010 revenues of $1.7 billion compared with $1.3 billion in the year-earlier quarter, reflecting an increase of 27% - the highest year-over-year quarterly revenue growth since fourth quarter 2007. The revenues in the reported quarter beat the Zacks Consensus Estimate of $1.5 billion.
The company reported a net income of $95.1 million or 30 cents per share during the quarter, compared with $64.3 million or 21 cents in the year-ago period.
Excluding non-recurring items, CB Richard Ellis reported a net income of $115.4 million or 36 cents per share during the quarter compared with $86.0 million or 28 cents in the year-earlier quarter. The fourth quarter recurring earnings also surpassed the Zacks Consensus Estimate by 2 cents.
For full year 2010, the company reported revenues of $5.1 billion compared with $4.2 billion in 2009, reflecting a year-over-year increase of 23%. CB Richard Ellis is the world’s largest commercial real estate services firm in terms of 2010 revenue. The revenues in the reported fiscal exceeded the Zacks Consensus Estimate of $5.0 billion.
For fiscal 2010, the company reported a net income of $200.3 million or 63 cents per share, compared with $33.3 million or 12 cents in 2009. Excluding non-recurring items, CB Richard Ellis’ net income more than doubled in 2010 to $239.8 million or 75 cents per share, compared with $109.8 million or 39 cents in the previous year. The fiscal recurring earnings surpassed the Zacks Consensus Estimate by 3 cents.
At year-end 2010, CB Richard Ellis had cash and cash equivalents of $506.6 million compared to $741.6 million in the year-earlier period.
For full year 2011, the company expects recurring earnings in the range of $0.95 to $1.05 per share.
Agreement of Analysts
In the last 7 days, no analysts have revised their earnings estimates for the first quarter or for fiscal 2011. In the last 30 days, one out of 7 analysts covering the stock has increased his earnings estimates for the first quarter. The fiscal year estimate for 2011 remained constant.
Magnitude of Estimate Revisions
Taking into account the analysts’ earnings revision, the Zacks Consensus Estimates for the first quarter and fiscal 2011 have remained constant over the last 7 days. However, in the last 30 days the analysts’ estimates for the first quarter remained constant while the same has gone up by seven cents to $1.09 per share for fiscal 2011.
CB Richard Ellis is the global market leader in commercial real estate brokerage and advisory services for property leasing and sales, forecasting, valuations, origination and servicing of commercial mortgage loans, as well as project and real estate investment management.
The company has a broad range of real estate product and services, and an extensive knowledge of domestic and international real estate markets that enables it to operate as a single-source provider of real estate solutions.
CB Richard Ellis has a hard-to-replicate intellectual capital and technological resources that develop and deliver superior analytical, research and client service tools to professionals that enable them to meet diverse client needs. This provides a competitive edge to the company over its rivals. The company believes that the excellent momentum shown by most businesses across the globe indicates that the overall market is in the early stages of recovery.
We currently have an Outperform recommendation on CB Richard Ellis, which presently has a Zacks #2 Rank that translates into a short-term Buy rating. One of its competitors, Jones Lang Lasalle Inc. (JLL) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.