What Happened?
Shares of commercial real estate firm CBRE (NYSE:CBRE) jumped 8.4% in the morning session after the company reported strong second-quarter financial results that beat Wall Street expectations and raised its full-year forecast. The commercial real estate services firm posted revenue of approximately $9.8 billion, a 16% increase from the previous year. Its adjusted earnings per share (EPS), a key measure of profitability, came in at $1.19, significantly higher than the analyst consensus of $1.05. This represented a 47% jump in Core EPS year-over-year. Bolstering investor confidence, CBRE also lifted its full-year Core EPS guidance to a new range of $6.10 to $6.20, signaling optimism about its future performance.
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What Is The Market Telling Us
CBRE’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 9.7% on the news that the company reported third-quarter earnings results, which blew past analysts' Workplace Solutions revenue expectations. Its EBITDA also outperformed Wall Street's estimates. Overall, we think this was a decent quarter, with some key metrics above expectations.
CBRE is up 22.5% since the beginning of the year, and at $159.31 per share, has set a new 52-week high. Investors who bought $1,000 worth of CBRE’s shares 5 years ago would now be looking at an investment worth $3,702.
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