The market is expecting punchy CBRE numbers following Jones Lang LaSalle’s record-breaking results this week.
US analysts JMP Securities have forecast that CBRE “will top Wall Street” estimates including its own forecast of a 16% rise in full-year revenue to $5.9bn (£3.7bn) in its results to be released on 7 February.
According to analyst William Marks, this will set the company on a trajectory to increase revenue to $6.5bn in 2012.
JLL reported a 23% increase in full-year revenue to a record $3.6bn and a 29% hike in net profit to $215m following double-digit growth in all three of its geographical markets.
Its fourth quarter revenue rose by 17% to $1.1bn. If acquisitions, such as its purchase of King Sturge, were stripped out, JMP Securities estimated that JLL raised its top line by 13% in Q4.
EMEA finished the year with a “robust” performance with revenue for the year coming in at $974m – a 34% hike compared with $729m in 2010.
The region’s full-year earnings before interest, taxes, depreciation, and amortisation surged from $38m to $57m following fourth-quarter earnings of $43m.
JLL incurred $56m of restructuring and acquisition charges, of which $16m related to employee retention, and $11m of amortisation related to the £197m King Sturge deal.
A comparison of JLL’s actual Q4 revenue growth and CBRE’s estimated revenue growth by segment and geography puts JLL ahead of its rival with a 20% hike compared with a forecast 9% rise, but this is now expected to be exceeded.
Marks said that although the two firms have similar overall revenue mixes, they almost never report similar quarterly growth figures.
However, he added that CBRE’s purchase of investment manager ING REIM will boost the company’s total revenues, not included in the table, which shows JLL to have posted a 98% increase in EMEA capital markets and sales.
