Colliers International Falls Short of Expectations in Q3 Earnings, Downgrades Outlook

TORONTO - Colliers International Group Inc. (NASDAQ:CIGI), a real estate services firm, reported third-quarter earnings that fell short of analyst expectations and lowered its full-year outlook due to weak fundraising in the investment management segment. The company announced adjusted earnings of $1.32 per share for the quarter, missing the consensus estimate of $1.50. Revenue came in at $1.18 billion, which aligned with analyst projections.

Colliers reported a 12% year-over-year increase in revenue, with an 11% increase in local currency. The company experienced strong growth across all service areas, with Engineering revenues up 21% and Capital Markets revenues rising 17%.

However, Colliers downgraded its full-year 2024 outlook due to updated fundraising expectations in the "high-margin Investment Management segment" for the remainder of the year. The company now expects adjusted earnings per share growth of 6-12%, down from the previous forecast of 11-21%.

Colliers' Chairman and CEO, Jay S. Hennick, stated, "We completed the acquisition of Englobe during the quarter and established a significant new growth platform in Canada. We are well-positioned to continue growing and strengthening our operations in the long term with a strong mergers and acquisitions pipeline."

The company finished the quarter with $98.8 billion in assets under management, reflecting a $2.4 billion increase from the previous quarter.