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Jones Lang LaSalle (JLL) Q1 Earnings, Revenues Top Estimates
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Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — reported first-quarter 2018 adjusted earnings of 97 cents per share, comfortably outpacing the Zacks Consensus Estimate of 60 cents. The bottom line also compared favorably with the year-ago adjusted earnings of 37 cents per share.
Revenues for the reported quarter came in at $3.56 billion, surpassing the Zacks Consensus Estimate of $3.17 billion. The figure was up 14% year over year. Fee revenues were up 14% year over year to $1.28 billion.
Results highlight robust organic growth and strong cash flows from operations. The company experienced Real Estate Services revenue growth that was mainly organic. Moreover, the company could achieve improvement in margin across the Americas and LaSalle.
Reflecting positive sentiments, shares of JLL have climbed 3.4% to $176.28, during the regular trading session on May 8.
Behind the Headline Numbers
During the first quarter, JLL’s Real Estate Services revenues climbed 13% year over year to $3.4 billion. In the Americas, revenues and fee revenues came in at $1.9 billion and $623.5 million, respectively, indicating 8% and 5% year-over-year growth. Results were driven by Property & Facility Management, and Advisory, Consulting and Other fee revenues segments. Leasing was also strong amid favorable market conditions.
Revenues and fee revenues of the EMEA segment were $783.6 million and $350.4 million, both up 30% from the year-ago period. This was backed by growth across all service lines.
For the Asia Pacific segment, revenues and fee revenues came in at $711.3 million and $194.4 million, respectively, marking a jump of 14% and 8% from the last year. Robust performance in Project & Development Services in Australia attributed to this growth. Further, upswing was driven by an increase in leasing in the markets of Beijing and Tokyo.
Revenues from the LaSalle Investment Management segment witnessed rise of 35% year over year to $119.3 million. Strong incentive fees due to real estate dispositions in the Asia Pacific along with rise in transaction fees & other, and advisory fees led to the increase. At the end of the first quarter, assets under management were $59 billion, up from $58.1 billion recorded at the end of the last reported quarter.
Liquidity
Jones Lang exited the reported quarter with cash and cash equivalents of $292.8 million, up from $268 million as of Dec 31, 2017. At the end of first-quarter 2018, the company’s net debt totaled $910.1 million, up $323.9 million from the prior-quarter end. This reflects the annual first-quarter payment of variable compensation to employees because of strong results delivered in 2017.
Dividend
JLL’s board of directors announced a dividend of 41 cents per share. The semi-annual dividend marked an 11% increase from the previous payout of 37 cents per share. The new dividend will be paid on Jun 15 to shareholders of record at the close of business on May 8, 2018.
Our Viewpoint
The company’s diversified product and services range is anticipated to help it register solid revenue growth across its operating markets, going forward. Further, vast knowledge of real estate markets and a spate of strategic investment activities, in a bid to capitalize on market consolidations, are anticipated to drive long-term profitability. Market share expansion will aid JLL to achieve strong growth as well as a decent cash level. However, unfavorable currency movements and a stiff competition from international, regional and local players are concerns.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
A few other top-ranked stocks worth considering are The RMR Group Inc. (RMR - Free Report) , Colliers International Group Inc. (CIGI - Free Report) and Invitation Home Inc. (INVH - Free Report) . All the companies carry a Zacks Rank of 2.
The 2018 Zacks Consensus Estimate for RMR Group is pegged at $6.30, stable over the last 30 days.
The Zacks Consensus Estimate for full-year 2018 earnings of Colliers International moved up 5.9% to $3.60 in the last 30 days.
The 2018 earnings estimates for Invitation Home are pegged at $1.18, which has remained stable over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Jones Lang LaSalle (JLL) Q1 Earnings, Revenues Top Estimates
Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — reported first-quarter 2018 adjusted earnings of 97 cents per share, comfortably outpacing the Zacks Consensus Estimate of 60 cents. The bottom line also compared favorably with the year-ago adjusted earnings of 37 cents per share.
Revenues for the reported quarter came in at $3.56 billion, surpassing the Zacks Consensus Estimate of $3.17 billion. The figure was up 14% year over year. Fee revenues were up 14% year over year to $1.28 billion.
Results highlight robust organic growth and strong cash flows from operations. The company experienced Real Estate Services revenue growth that was mainly organic. Moreover, the company could achieve improvement in margin across the Americas and LaSalle.
Reflecting positive sentiments, shares of JLL have climbed 3.4% to $176.28, during the regular trading session on May 8.
Behind the Headline Numbers
During the first quarter, JLL’s Real Estate Services revenues climbed 13% year over year to $3.4 billion. In the Americas, revenues and fee revenues came in at $1.9 billion and $623.5 million, respectively, indicating 8% and 5% year-over-year growth. Results were driven by Property & Facility Management, and Advisory, Consulting and Other fee revenues segments. Leasing was also strong amid favorable market conditions.
Revenues and fee revenues of the EMEA segment were $783.6 million and $350.4 million, both up 30% from the year-ago period. This was backed by growth across all service lines.
For the Asia Pacific segment, revenues and fee revenues came in at $711.3 million and $194.4 million, respectively, marking a jump of 14% and 8% from the last year. Robust performance in Project & Development Services in Australia attributed to this growth. Further, upswing was driven by an increase in leasing in the markets of Beijing and Tokyo.
Revenues from the LaSalle Investment Management segment witnessed rise of 35% year over year to $119.3 million. Strong incentive fees due to real estate dispositions in the Asia Pacific along with rise in transaction fees & other, and advisory fees led to the increase. At the end of the first quarter, assets under management were $59 billion, up from $58.1 billion recorded at the end of the last reported quarter.
Liquidity
Jones Lang exited the reported quarter with cash and cash equivalents of $292.8 million, up from $268 million as of Dec 31, 2017. At the end of first-quarter 2018, the company’s net debt totaled $910.1 million, up $323.9 million from the prior-quarter end. This reflects the annual first-quarter payment of variable compensation to employees because of strong results delivered in 2017.
Dividend
JLL’s board of directors announced a dividend of 41 cents per share. The semi-annual dividend marked an 11% increase from the previous payout of 37 cents per share. The new dividend will be paid on Jun 15 to shareholders of record at the close of business on May 8, 2018.
Our Viewpoint
The company’s diversified product and services range is anticipated to help it register solid revenue growth across its operating markets, going forward. Further, vast knowledge of real estate markets and a spate of strategic investment activities, in a bid to capitalize on market consolidations, are anticipated to drive long-term profitability. Market share expansion will aid JLL to achieve strong growth as well as a decent cash level. However, unfavorable currency movements and a stiff competition from international, regional and local players are concerns.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise | Jones Lang LaSalle Incorporated Quote
Currently, JLL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Stocks to Consider
A few other top-ranked stocks worth considering are The RMR Group Inc. (RMR - Free Report) , Colliers International Group Inc. (CIGI - Free Report) and Invitation Home Inc. (INVH - Free Report) . All the companies carry a Zacks Rank of 2.
The 2018 Zacks Consensus Estimate for RMR Group is pegged at $6.30, stable over the last 30 days.
The Zacks Consensus Estimate for full-year 2018 earnings of Colliers International moved up 5.9% to $3.60 in the last 30 days.
The 2018 earnings estimates for Invitation Home are pegged at $1.18, which has remained stable over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>