CB Richard Ellis Group (CBG) June 2008 Earnings Conference Call Notes
-EPS of 16c vs. 44c est. Revenue of $1.3B vs. $1.42B est. Could see earnings down as much as 40-50% in 2008 which would mean 1.16 EPS vs. 1.83 est.
-Margins could get 300-400bps worse vs. previous worst case scenario of 100-200bps. This is a “classic stagflation environment”
-”Current environment as being very challenging and still have high probability of getting worse before we see improvement”
-”Global markets have taken a decided turn for the worse” “no indication of recovery anytime soon”
-EMEA growth slowed considerably from last quarter. Asia is slowing as well
-Expect more bad news over the next 6 to 9 months from the economy, as job cuts continue, and for the real estate markets occupancy, rents, and prices fall
Take-aways
-Huge EPS miss and potential guide-down for the rest of 2008.
-Things got materially worse in the U.S., UK, Europe, and Asia. They expect things to stay bad for at least 6-9 months.
-Commercial real estate business nose-dived in the last 3 months. “Classic stagflation environment” = brutal