Analyst Note| Michael Wong, CFA, CPA |
Narrow-moat-rated CBRE Group posted a strong set of numbers in the second quarter, comfortably beating the FactSet consensus estimate of $0.78 per share with reported adjusted EPS of $1.36. Companywide net revenue has fully recovered beyond prepandemic levels as the company reported second-quarter companywide net revenue of $3.91 billion, a 31% increase on a year-over-year basis and an 11% increase from the second quarter of 2019. Adjusted EBITDA also came in strong for the current quarter at $718 million, 53% higher than the second quarter of 2019. Despite the strong quarter, we currently don't anticipate making any significant changes to our long-term outlook for the company and thus reaffirm our $73 fair value estimate for CBRE.