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Why Is Jones Lang LaSalle (JLL) Up 8.1% Since the Last Earnings Report?

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It has been about a month since the last earnings report for Jones Lang LaSalle Incorporated (JLL - Free Report) . Shares have added about 8.1% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Jones Lang LaSalle Q4 Earnings Beat Estimates, Decrease Y/Y

JLL reported fourth-quarter 2016 adjusted earnings per share of $3.95, beating the Zacks Consensus Estimate of $3.92. However, the bottom line came in lower than the fourth-quarter 2015 adjusted earnings of $4.61 per share.

Revenues came in at around $2.16 billion, surpassing the Zacks Consensus Estimate of $2.04 billion and up 14% year over year. Fee revenues increased 11% year over year to $1.85 billion.

For full-year 2016, adjusted earnings per share came in at $8.13, down from the 2015 figure of $10.20. However, full year revenues of $6.80 billion increased 14% year over year and fee revenues of $5.76 billion expanded 11% from a year ago.

For the reported quarter, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came in at $286 million, down from $310 million in the prior-year quarter.

Revenue Growth

During the quarter, fee revenues from the Americas totaled $850 million, denoting a year-over-year increase of 12%. Fee revenues in the EMEA (Europe, the Middle East and Africa) region grew 11% year over year to $548.1 million, while that in the Asia-Pacific region rose 11% year over year to $350.9 million.

Further, revenues from LaSalle Investment Management segment climbed 3% year over year to $100 million. At the end of the fourth quarter, assets under management totaled $60.1 billion, up from $59.7 billion at the end of the prior quarter.

Liquidity

In its latest quarterly supplement, the company revealed that it enjoys credit facility of $2.75 billion with the maturity date of Jun 2021.

The company exited the quarter with cash and cash equivalents of $258.5 million, up from $216.6 million as of Dec 31, 2015. At the end of the fourth quarter, the company’s net debt was $1.1 billion, down $171 million from the prior-quarter end.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter In the past month.

VGM Scores

At this time, Jones Lang LaSalle's stock has a nice Growth Score of 'B', though it is lagging a lot on the Momentum front with an 'F'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate that the stock is more suitable for value investors than growth investors.

Outlook

While estimates have been trending upward for the stock, the magnitude of this revision indicates a downward shift. Notably the stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.


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