Commercial building brokerage CB Richard Ellis reported a 360 percent increase in third quarter earnings, but its stock price declined early Wednesday in the shadow of larger issues in the real estate sector.
Net income for the Los Angeles-based CB Richard Ellis totaled $57 million (18 cents per share), compared to $12.4 million (4 cents per share) in the third quarter last year. Analysts polled by Thomson Reuters expected earnings of 17 cents per share.
The company attributed its performance to “a slow return of liquidity to the investment market, which has helped drive demand for commercial real estate, as well as CB Richard Ellis’ improving market share.” Also, the company acknowledged that its 2009 numbers were much lower than normal.
Despite the good report, shares of CB Richard lost 4 percent of their value or 72 cents, to trade at $18.18 in mid-day trading Wednesday.
A report by JPMorgan Chase said investors had already factored in the improved economy and the company’s performance. Shares of Chicago-based Jones Lang Lasalle, the largest competitor to CB Richard, fell more than 6 percent reflecting continued worries about the sector.
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