Sales & Leasing Hits New First-Quarter Records as CBRE Group Posted Strong Results

Narrow-moat-rated CBRE Group posted strong first-quarter results, comfortably beating the FactSet consensus estimate of $1.08 per share with reported adjusted EPS of $1.39. The firm delivered impressive results on all fronts with companywide net revenue of $4.37 billion, a 30% increase on a year-over-year basis. Adjusted EBITDA also came in strong for the current quarter at $732 million, 56% higher compared with first-quarter 2021. This resulted in an adjusted EBITDA margin of 16.7% for the quarter, up 280 basis points compared with last year and up 180 basis points from the first quarter of 2019. After incorporating the first-quarter results, we are reducing our fair value estimate to $100 per share from $102.