CBRE Group ( NYSE: CBRE ) stock slumped 4.1% in Thursday morning trading after the commercial real estate services and investment firm's Q3 results fell short of average Wall Street estimates.
“Lower third quarter core earnings-per-share reflected a sharp deterioration in the macro environment, particularly with regard to capital availability for transactions,” said President and CEO Bob Sulentic.
Q3 core EPS of $1.13 missed the average analyst estimate of $1.30 and dipped from $1.38 in Q3 2021.
Revenue of $7.53B also trailed below the consensus of $7.73B, but increased from $6.8B a year before.
"The capital markets environment weakened materially after Labor Day, causing both sales and loan originations to fall sharply," Sulentic added.
Core EBITDA was $606M compared with $732M in Q3 of last year.
Free cash flow came in at $690M, down from $928M a year earlier.
The company's Advisory Services segment saw operating profit of $424M, dropping 18.8% from the year-ago quarter. Global mortgage origination revenue tumbled 28% Y/Y as a chunk of debt capital sources restricted their lending during the quarter.
Global Workforce Solutions unit operating profit was $219M vs. $187M in Q3 2021.
Real Estate Investment operating profit collapsed to $59M from $147M in Q3 2021.
Earlier, CBRE Non-GAAP EPS of $1.13 misses by $0.17, revenue of $7.53B misses by $200M .
For further details see:
CBRE Q3 earnings miss consensus as weaker capital markets fuel loan-origination plunge