First quarter profit climbed 71 percent at CB Richard Ellis Group Inc. thanks to gains in international business, but the earnings missed Wall Street estimates sending shares downward.
The Los Angeles-based real estate services company posted net income of $20.5 million (10 cents per share), almost double the $12 million (5 cents) in the same period a year earlier. Analysts polled by Bloomberg News projected earnings of 21 cents per share.
Revenues increased 1.4 percent to $1.23 billion, beating Wall Street's estimates of $1.16 billion.
The company's first-quarter results were helped by growth in its outsourcing business activities, which grew by 34 percent, reflecting the benefit of the December 2006 acquisition of Trammell Crow Co.
"Generally, first-quarter 2008 results were in line with our expectations," said CEO Brett White. "As anticipated, the weaker economy as well as the unsettled credit market environment materially impacted our capital markets businesses."
Excluding charges related to its acquisition of Trammell Crowe, CBRE posted earnings of $31.7 million (15 cents).
Shares closed down 4.4 percent to $22.25 Tuesday.
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