CBRE Group (CBRE) Q4 2022 Earnings Call Transcript

CBRE Group Inc. (NYSE:CBRE) Q4 2022 Earnings Conference Call February 23, 2023 8:30 AM ET

Company Participants

Bob Sulentic - President, Chief Executive Officer

Emma Giamartino - Chief Financial Officer

Brad Burke - Senior Vice President, Investor Relations

Conference Call Participants

Anthony Paolone - JP Morgan

Chandni Luthra - Goldman Sachs

Steve Sakwa - Evercore ISI

Michael Griffin - Citi

Jade Rahmani - KBW

Patrick O’Shaughnessy - Raymond James

Operator

Greetings and welcome to the CBRE Q4 2022 earnings conference call.

At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please press star, zero on your telephone keypad. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Brad Burke, Senior Vice President of Investor Relations and Strategic Finance at CBRE. Thank you, you may begin.

Brad Burke

Good morning everyone and welcome to CBRE’s fourth quarter 2022 earnings conference call. Earlier today, we posted a presentation deck on our website that you can use to follow along with our prepared remarks, and an Excel file that contains additional supplemental materials.

Before we kick off today’s call, I’ll remind you that today’s presentation contains forward-looking statements, including without limitation statements concerning our earnings outlook. Forward-looking statements are predictions, projections, or other statements about future events. These statements involve risks and uncertainties that may cause actual results and trends to differ materially from those projected. For a full discussion of the risks and other factors that may impact these forward-looking statements, please refer to this morning’s earnings release and our SEC filings.

We have provided reconciliations of the non-GAAP financial measures discussed on our call to the most directly comparable GAAP measures, together with explanations of these measures in our presentation deck appendix.

I’m joined on today’s call by Bob Sulentic, our President and CEO, and Emma Giamartino, our Chief Financial Officer.

Now please turn to Slide 5 as I turn the call over to Bob.

Bob Sulentic

Thank you Brad, and good morning everyone. As you’ve seen, we reported core EPS of $1.33 for the fourth quarter. While down significantly from a year ago, core earnings were slightly above the estimate we provided at the end of the third quarter. This outcome was driven by several of the more cyclically resilient elements of our business, like outsourcing and others that are secularly favored, like project management and the logistics asset class. These businesses, which together comprise about 45% of our core EBITDA, grew revenue more than we expected, offset by a slightly larger than expected decline in transactional revenue.