Colliers International Group (NASDAQ:CIGI) Inc., the British Columbia-based real estate services company, has reported a significant increase in its recent quarterly net earnings, despite facing challenges in capital markets. The company's net earnings rose to $25.1 million, doubling from $12 million recorded the previous year.
The rise in profits comes amid stricter credit conditions, rising interest rates, and uncertainties surrounding the return-to-office trend. However, the company's adjusted per-share earnings fell short of market expectations. had forecast $1.62 per share, but the actual figure came in at $1.19.
Colliers' revenue for the quarter declined by 4.7% to reach $1.06 billion, aligning with market predictions. Notably, there was growth within certain segments of the company. The outsourcing and advisory business saw a 14% revenue increase, while the investment management arm's revenue climbed by 24%.
However, revenues from leasing and capital markets operations experienced declines of approximately 9% and 42%, respectively. These decreases are reflective of the broader challenges faced by Colliers in the current market environment.
In response to these results and market conditions, Jay Hennick, CEO of Colliers International, revised the company's financial outlook for the coming period. The per-share earnings forecast was adjusted from a range of $6.70-$7.50 to a lower estimate of $5.10-$5.50.
Similarly, revenue expectations were revised downwards from an initial range of $4.4-$4.6 billion to a new estimate of $4.3-$4.4 billion. Despite these revisions, Hennick anticipates a market rebound by the second half of 2024 which could potentially bolster the company’s performance in the longer term.
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