CB Richard Ellis Group Inc. shares were down more than 7 percent on Thursday morning, a day after the real estate services giant reported an 11 percent increase in second quarter earnings, but still missed Wall Street expectations.
After the markets closed on Wednesday, the Los Angeles real estate services company reported net income of $61.2 million (19 cents per share), compared with $54.8 million (17 cents) a year ago.
Revenue rose 21 percent to $1.42 billion, boosted by a 21 percent increase in leasing revenue and a 44 percent jump in sales revenue globally. In its largest market, the Americas division, total revenue rose 24 percent to nearly $898 million.
“Despite continued uncertainty in the macro environment, revenue rose by double digits in nearly every service line in all three geographic regions,” Chief Executive Brett White said in a statement. “This performance illustrates the ability of our people and platform to drive continued business gains in a global economy that is still marked by slow, uneven growth.”
Excluding a $5.7 million charges related to its acquisition of the real estate arm of ING Group NV, the company earned 21 cents per share. Expenses also were up 20 percent. Analysts surveyed by Thomson Reuters on average expected adjusted per-share profit of 24 cents on revenue of $1.38 million.
CB Richard Ellis, which brokers sales, handles financing and leasing, and manages properties, also announced that it would change its corporate name to CBRE Group Inc. on Jan. 1. “Increasingly, our clients have come to know us as CBRE, and our highly visible CBRE logo has grown into one of the industry’s most powerful and well recognized brands,” White said. “Adopting CBRE as our corporate name simplifies our identity.”
Shares were down $1.77, or 7.7 percent, to $21.15 in Thursday midday trading on the New York Stock Exchange.
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