Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — reported third-quarter 2018 adjusted earnings of $3.02 per share, surpassing the Zacks Consensus Estimate of $2.31. The bottom line compares favorably with the year-ago adjusted earnings of $2.21 per share.
Revenues for the reported quarter came in at around $3.97 billion, surpassing the Zacks Consensus Estimate of $3.96 billion. The reported figure improved 12.8%, year over year. Fee revenues were up 12.1% year over year to $1.59 billion.
Results highlight robust organic growth and strong cash flows from operations. The company also recorded Real Estate Services revenue growth.
Shares of JLL appreciated 2.4% to $145.4, during regular trading session on Nov 7.
Behind the Headline Numbers
During the quarter under review, JLL’s Real Estate Services revenues climbed 11% year over year to $3.8 billion. In the Americas, revenues and fee revenues came in at $2.2 billion and $774.1 million, respectively, indicating 14.6% and 11.6% year-over-year growth. This was backed by growth in the Property & Facility Management segment, and solid performance in the company’s portfolio in Mid-Atlantic, Southwest, Houston and Midwest U.S.
Revenues and fee revenues of the EMEA segment were $805.6 million and $396.7 million, up 7.4% and 3.6%, respectively, from the year-ago period. Growth in fee revenue was driven by robust performance of Project & Development Services and Leasing segments.
For the Asia-Pacific segment, revenues and fee revenues came in at $790 million and $252.3 million, respectively, marking year-over-year jump of 5.4% and 2.2%. Higher leasing activity in office sectors of China and Australia aided overall fee revenue growth.
Revenues from the LaSalle Investment Management segment recorded rise of 69% year over year to $172.6 million. Strong incentive fees due to real estate dispositions and higher advisory fees supported results. At the end of the Sep-end quarter, assets under management were $59.5 billion, down from $59.9 billion recorded at the end of the last reported quarter.
Liquidity
Jones Lang exited the reported quarter with cash and cash equivalents of $327 million, up from $268 million as of Dec 31, 2017. At the end of third-quarter 2018, the company’s net debt totaled $742.8 million, down $229.8 million from the prior-quarter end.
Our Viewpoint
In the third quarter, JLL witnessed strong organic revenue growth across Leasing, Corporate Solutions and LaSalle business segments. Going forward, market-share expansion will help JLL achieve stellar growth and a decent cash level. 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.
Nevertheless, unfavorable currency movements and interest rate hikes may negatively impact the company’s performance. Additionally, stiff competition from international, regional and local players also remains a concern.
Currently, JLL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Stocks in the Same Space
CBRE Group (CBRE - Free Report) came out with third-quarter earnings of 79 cents per share, beating the Zacks Consensus Estimate of 75 cents. This compares to earnings of 64 cents per share recorded in the year-ago quarter.
HFF (HF - Free Report) reported third-quarter earnings of 73 cents per share, surpassing the Zacks Consensus Estimate of 63 cents. This compares favorably to earnings of 54 cents per share witnessed in the prior-year period.
Colliers International’s (CIGI - Free Report) Sep-end earnings of 92 cents per share topped the Zacks Consensus Estimate of 80 cents. This compares to earnings of 61 cents per share reported a year ago.
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Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — reported third-quarter 2018 adjusted earnings of $3.02 per share, surpassing the Zacks Consensus Estimate of $2.31. The bottom line compares favorably with the year-ago adjusted earnings of $2.21 per share.
Revenues for the reported quarter came in at around $3.97 billion, surpassing the Zacks Consensus Estimate of $3.96 billion. The reported figure improved 12.8%, year over year. Fee revenues were up 12.1% year over year to $1.59 billion.
Results highlight robust organic growth and strong cash flows from operations. The company also recorded Real Estate Services revenue growth.
Shares of JLL appreciated 2.4% to $145.4, during regular trading session on Nov 7.
Behind the Headline Numbers
During the quarter under review, JLL’s Real Estate Services revenues climbed 11% year over year to $3.8 billion. In the Americas, revenues and fee revenues came in at $2.2 billion and $774.1 million, respectively, indicating 14.6% and 11.6% year-over-year growth. This was backed by growth in the Property & Facility Management segment, and solid performance in the company’s portfolio in Mid-Atlantic, Southwest, Houston and Midwest U.S.
Revenues and fee revenues of the EMEA segment were $805.6 million and $396.7 million, up 7.4% and 3.6%, respectively, from the year-ago period. Growth in fee revenue was driven by robust performance of Project & Development Services and Leasing segments.
For the Asia-Pacific segment, revenues and fee revenues came in at $790 million and $252.3 million, respectively, marking year-over-year jump of 5.4% and 2.2%. Higher leasing activity in office sectors of China and Australia aided overall fee revenue growth.
Revenues from the LaSalle Investment Management segment recorded rise of 69% year over year to $172.6 million. Strong incentive fees due to real estate dispositions and higher advisory fees supported results. At the end of the Sep-end quarter, assets under management were $59.5 billion, down from $59.9 billion recorded at the end of the last reported quarter.
Liquidity
Jones Lang exited the reported quarter with cash and cash equivalents of $327 million, up from $268 million as of Dec 31, 2017. At the end of third-quarter 2018, the company’s net debt totaled $742.8 million, down $229.8 million from the prior-quarter end.
Our Viewpoint
In the third quarter, JLL witnessed strong organic revenue growth across Leasing, Corporate Solutions and LaSalle business segments. Going forward, market-share expansion will help JLL achieve stellar growth and a decent cash level. 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.
Nevertheless, unfavorable currency movements and interest rate hikes may negatively impact the company’s performance. Additionally, stiff competition from international, regional and local players also remains a concern.
Currently, JLL carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Stocks in the Same Space
CBRE Group (CBRE - Free Report) came out with third-quarter earnings of 79 cents per share, beating the Zacks Consensus Estimate of 75 cents. This compares to earnings of 64 cents per share recorded in the year-ago quarter.
HFF (HF - Free Report) reported third-quarter earnings of 73 cents per share, surpassing the Zacks Consensus Estimate of 63 cents. This compares favorably to earnings of 54 cents per share witnessed in the prior-year period.
Colliers International’s (CIGI - Free Report) Sep-end earnings of 92 cents per share topped the Zacks Consensus Estimate of 80 cents. This compares to earnings of 61 cents per share reported a year ago.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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