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Key Predictions for Q3 Earnings Reports of CBG, WPC & RLGY

We are in the final leg of the Q3 earnings season, and a few companies like CBRE Group CBG, W.P. Carey WPC and Realogy Holdings RLGY are gearing up to report their numbers tomorrow.

Recovery in the economy and labor markets has reinstated investors’ confidence. As a result, many companies in the space have witnessed accelerated business growth in third-quarter 2017.

The real estate debt market remained liquid in the quarter. This has been possible due to the increased participation of alternative lenders.

Per a report by Jones Lang LaSalle Incorporated JLL, despite elevated supply of multi-family assets in the first half of the year, national absorption came in at 1.1%, reflecting steady demand. This is anticipated to increase property investment and leasing activity, and aid the top-line performance of several companies in the to-be-reported quarter.     

Further, strength in regional services business as well as growth in global occupier outsourcing business will support companies in the real estate operations industry.

Also, this view is confirmed by the Zacks Industry Rank. The Real Estate-Operations industry carries a Zacks Industry Rank of #74, which places it at the top 29% of the 250 plus Zacks-ranked industries.

Let us take a look at how the following companies are placed ahead of their quarterly releases on Nov 3.

Commercial real estate services and investment firm CBRE provides a broad range of real estate products and services. The company’s cost containment efforts will likely result in operational efficiencies in the third quarter. Also, CBRE’s geographic expansion effort in a bid to enhance its service offerings augurs well. It will also prove conductive to the company’s quarterly performance.

Amid these, the Zacks Consensus Estimate for third-quarter revenues is pegged at $3.42 billion, indicating projected growth of 7.1% year over year. Moreover, the estimate for revenues from the Americas segment is nearly $1.87 billion, the same form Europe, the Middle East and Africa (EMEA) segment is estimated at $1.03 billion, while Asia Pacific revenues estimate is $404 million.  

At present, CBRE has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%. Though the Zacks Rank is favorable, we also need to have a positive ESP to be confident of an earnings beat. (Read more: CBRE Group to Report Q3 Earnings: What's in the Cards?)

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

CBRE Group, Inc. Price and EPS Surprise
 

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Realogy Holdings Corp., headquartered in New Jersey, is a preeminent provider of residential real estate services. The company, through its subsidiaries, provides real estate brokerage services, relocation services, and title and settlement services. Numerous brands and widespread operations aid the company to churn dependable revenues from diverse locations and price points. 

The company derives revenues on a fee-for-service basis. In the second quarter, it recorded 9% growth in home sales transaction volume. The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.8 billion, indicating projected growth of 8.3% year over year.  Also, the third-quarter 2017 earnings estimate of 80 cents suggests 7.8% year-over-year growth.

At present, Realogy Holdings has a Zacks Rank #3 (Hold) and an Earnings ESP of -9.81%. Though the company has a favorable Zacks Rank, the negative ESP lowers chances of an earnings beat.

Realogy Holdings Corp. Price and EPS Surprise
 

W. P. Careyis a real estate investment trust engaged in providing long-term sale-leaseback and build-to-suit financing for companies. The firm primarily invests in commercial properties which are generally triple-net leased to single corporate tenants, including office, warehouse, industrial, logistics, retail, hotel, R&D and self-storage properties.

The Zacks Consensus Estimate for its revenues of $203.2 million indicates a year-over-year growth of 12.8%. Furthermore, its third-quarter earnings are expected to increase 15.5% to $1.19.

At present, W. P. Carey has an Earnings ESP of +1.68%. However, the company’s Zacks Rank of 4 (Sell) lowers chances of an earnings beat.

W.P. Carey Inc. Price and EPS Surprise
 

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Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report
 
CBRE Group, Inc. (CBG): Free Stock Analysis Report
 
Realogy Holdings Corp. (RLGY): Free Stock Analysis Report
 
W.P. Carey Inc. (WPC): Free Stock Analysis Report
 
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