CBRE shares sink after company misses forecast, cuts outlook
NEW YORK (Reuters) - Shares of CBRE Group Inc (CBG.N) sank on Wednesday after the company reported lower-than-expected results and cut its full-year forecast, citing concerns about the U.S. election, possible U.S. federal spending cuts and global economic softness that reduced property sales and leasing activity.
Shares of real estate services company CBRE were down 4.1 percent, or 74 cents, at $17.51 Wednesday afternoon on the New York Stock Exchange, which resumed trading after two days of suspension due to Hurricane Sandy. Shares had been down more than 7.4 percent to $16.86 in the morning.
Late Tuesday the real estate services company reported earnings, after one-time items, of $83.6 million, or 26 cents per share, missing the average of analysts forecast of 33 cents per share according to Thomson Reuters I/B/E/S. Its high margin businesses are fueled by commissions based on brokering property sales and leases.
The Los Angeles-based company also clipped its forecast for 2012 earnings, excluding charges, to the range of $1.15 to $1.20 per share, down from its prior forecast of $1.20 to $1.25 per share.
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