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Real Estate Operation Firms Q2 Earnings Preview: Z, RLGY, KW
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The hectic earnings season is gradually nearing its end. In real estate operations industry, many top-notch companies have already come out with earnings releases.
Two major companies from this industry–CBRE Group, Inc. and Jones Lang LaSalle Incorporated (JLL - Free Report) have reported second-quarter 2016 results on Jul 28 and Aug 2, respectively. CBRE Group came up with adjusted earnings of 52 cents per share, beating the Zacks Consensus Estimate of 51 cents and ahead of the prior-year tally of 42 cents. A year-over-year rise in revenues aided the results. On the other hand, Jones Lang LaSalle reported adjusted earnings of $1.93 per share, missing the Zacks Consensus Estimate of $1.98.
Some firms from the real estate operations industry which are slated to report second-quarter 2016 earnings on Aug 4 are – Zillow Group, Inc. (Z - Free Report) , Realogy Holdings Corp. and Kennedy-Wilson Holdings, Inc. (KW - Free Report) .
Real estate operations firms offer a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of real estate companies. Performance of these real estate service providers depends very much on the developments in the real estate market as well as in the economy.
Modest economic growth, along with low interest rates environment and spells of volatility, led to restrained growth in real estate activities, commercial rents and investment sales in the second-quarter 2016. This trend is likely to continue for the rest of the year.
Now let’s take a look at what’s in store for these real estate service providers.
For doing this, we rely on the Zacks methodology of combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.
Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Seattle, WA-based Zillow Group offers real estate and home-related brands on mobile and web. The company has an Earnings ESP of -62.50% and a Zacks Rank #3. The company lacks in one of the requirements and our model does not predict an earnings beat.
Realogy Holdings, the Madison, NJ-based company provides real estate brokerage services, relocation services, and title and settlement services. The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The company lacks in both the requirements and our model does not predict an earnings beat.
Beverly Hills, CA-based Kennedy-Wilson Holdings is engaged in offering an array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.
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Real Estate Operation Firms Q2 Earnings Preview: Z, RLGY, KW
The hectic earnings season is gradually nearing its end. In real estate operations industry, many top-notch companies have already come out with earnings releases.
Two major companies from this industry–CBRE Group, Inc. and Jones Lang LaSalle Incorporated (JLL - Free Report) have reported second-quarter 2016 results on Jul 28 and Aug 2, respectively. CBRE Group came up with adjusted earnings of 52 cents per share, beating the Zacks Consensus Estimate of 51 cents and ahead of the prior-year tally of 42 cents. A year-over-year rise in revenues aided the results. On the other hand, Jones Lang LaSalle reported adjusted earnings of $1.93 per share, missing the Zacks Consensus Estimate of $1.98.
Some firms from the real estate operations industry which are slated to report second-quarter 2016 earnings on Aug 4 are – Zillow Group, Inc. (Z - Free Report) , Realogy Holdings Corp. and Kennedy-Wilson Holdings, Inc. (KW - Free Report) .
Real estate operations firms offer a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of real estate companies. Performance of these real estate service providers depends very much on the developments in the real estate market as well as in the economy.
Modest economic growth, along with low interest rates environment and spells of volatility, led to restrained growth in real estate activities, commercial rents and investment sales in the second-quarter 2016. This trend is likely to continue for the rest of the year.
Now let’s take a look at what’s in store for these real estate service providers.
For doing this, we rely on the Zacks methodology of combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Earnings ESP, to predict the chances of a beat this quarter.
Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. Research shows that with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70% for the stocks.
Seattle, WA-based Zillow Group offers real estate and home-related brands on mobile and web. The company has an Earnings ESP of -62.50% and a Zacks Rank #3. The company lacks in one of the requirements and our model does not predict an earnings beat.
ZILLOW GROUP-C Price and EPS Surprise
ZILLOW GROUP-C Price and EPS Surprise | ZILLOW GROUP-C Quote
Realogy Holdings, the Madison, NJ-based company provides real estate brokerage services, relocation services, and title and settlement services. The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The company lacks in both the requirements and our model does not predict an earnings beat.
REALOGY HOLDING Price and EPS Surprise
REALOGY HOLDING Price and EPS Surprise | REALOGY HOLDING Quote
Beverly Hills, CA-based Kennedy-Wilson Holdings is engaged in offering an array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. Our model does not conclusively predict that the company will record a positive surprise.
KENNEDY-WILSON Price and EPS Surprise
KENNEDY-WILSON Price and EPS Surprise | KENNEDY-WILSON Quote
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