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Jones Lang LaSalle (JLL) Down 2.3% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Jones Lang LaSalle (JLL - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Jones Lang LaSalle due for a breakout? 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 Q2 Earnings Top Estimates
JLL reported stellar results for the second quarter on strong rebound in its transaction-based businesses. Its second-quarter 2021 adjusted earnings of $4.20 per share exceeded the Zacks Consensus Estimate of $1.44. The reported figure is also significantly ahead of the prior-year quarter figure of 71 cents.
Revenues for the quarter came in at $4.5 billion, surpassing the Zacks Consensus Estimate of $3.95 billion and 22.5% ahead of the year-ago quarter tally.
Results reflect broad-based growth across all segments and service lines with many geographies experiencing macroeconomic recovery. The second quarter saw a strong rebound in Leasing and Capital Markets.
According to Christian Ulbrich, JLL CEO, "Continued investments in our platform, people and technology, coupled with financial discipline and strong operational execution, have been instrumental to our success. Given the strong momentum in the business, the successful integration of HFF and increased visibility into a post-pandemic future, we are increasing our 2021 Adjusted EBITDA margin target range to 16% to 19%."
Apart from this, adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 18.3% (18.5% in local currency) compared with 8.3% in2020. This highlights substantial improvement in revenues, mainly from higher margin transaction-based service lines as well as higher equity earnings driven by JLL Technologies investments and LaSalle.
Behind the Headline Numbers
During the June-end quarter, JLL’s RES revenues increased 23% (18% in local currency) year over year to $4.4 billion, highlighting broad-based growth across all service lines, mainly driven by Leasing and Capital Markets, as well as improvement across all geographic segments.
In the Americas, revenues and fee revenues came in at $2.7 billion and $1.06 billion, respectively, reflecting a 21% and 56% year-over-year jump. This displays robust performance in transaction-based service lines, with organic fee revenues reaching the pre-pandemic levels.
Revenues and fee revenues of the EMEA segment came in at $809.8 million and $373.6 million, up 29% and 39%, respectively, from the year-ago period. This highlights strong improvement in Capital Markets and Leasing businesses following a pandemic-impacted prior-year quarter.
For the Asia-Pacific segment, revenues and fee revenues came in at $867.9 million and $271.6 million, respectively, marking a year-over-year increase of 21% and 37%. This was driven by rebound in transaction-based revenues. Also, business growth in Valuation Advisory, particularly in Australia, resulted in the revenue increase in Advisory, Consulting and Other.
Revenues and fee revenues in the LaSalle segment increased 16% and 14% year over year to $115.8 million and $108.5, respectively. This was aided by advisory fees, mainly reflecting continued growth of open-end investment vehicles and recent valuation increases.
At the end of second-quarter 2021, assets under management were $73.4 billion, up 4% from the last quarter end, reflecting net valuation increases and acquisitions, partially offset by dispositions, withdrawals and foreign currency decreases.
Liquidity
JLL exited second-quarter 2021 with cash and cash equivalents of $494 million, down from $574.3 million as of Dec 31, 2020. Additionally, as of Jun 30, 2021, the company’s net debt amounted to $648.5 million, marking a decrease of $21.7 million from the prior-quarter end and a decline of $421.2 million from the year-ago quarter end.
In second-quarter 2021, the company repurchased 200,000 shares for $41.1 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 15.66% due to these changes.
VGM Scores
Currently, Jones Lang LaSalle has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Jones Lang LaSalle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Jones Lang LaSalle (JLL) Down 2.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Jones Lang LaSalle (JLL - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Jones Lang LaSalle due for a breakout? 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 Q2 Earnings Top Estimates
JLL reported stellar results for the second quarter on strong rebound in its transaction-based businesses. Its second-quarter 2021 adjusted earnings of $4.20 per share exceeded the Zacks Consensus Estimate of $1.44. The reported figure is also significantly ahead of the prior-year quarter figure of 71 cents.
Revenues for the quarter came in at $4.5 billion, surpassing the Zacks Consensus Estimate of $3.95 billion and 22.5% ahead of the year-ago quarter tally.
Results reflect broad-based growth across all segments and service lines with many geographies experiencing macroeconomic recovery. The second quarter saw a strong rebound in Leasing and Capital Markets.
According to Christian Ulbrich, JLL CEO, "Continued investments in our platform, people and technology, coupled with financial discipline and strong operational execution, have been instrumental to our success. Given the strong momentum in the business, the successful integration of HFF and increased visibility into a post-pandemic future, we are increasing our 2021 Adjusted EBITDA margin target range to 16% to 19%."
Apart from this, adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 18.3% (18.5% in local currency) compared with 8.3% in2020. This highlights substantial improvement in revenues, mainly from higher margin transaction-based service lines as well as higher equity earnings driven by JLL Technologies investments and LaSalle.
Behind the Headline Numbers
During the June-end quarter, JLL’s RES revenues increased 23% (18% in local currency) year over year to $4.4 billion, highlighting broad-based growth across all service lines, mainly driven by Leasing and Capital Markets, as well as improvement across all geographic segments.
In the Americas, revenues and fee revenues came in at $2.7 billion and $1.06 billion, respectively, reflecting a 21% and 56% year-over-year jump. This displays robust performance in transaction-based service lines, with organic fee revenues reaching the pre-pandemic levels.
Revenues and fee revenues of the EMEA segment came in at $809.8 million and $373.6 million, up 29% and 39%, respectively, from the year-ago period. This highlights strong improvement in Capital Markets and Leasing businesses following a pandemic-impacted prior-year quarter.
For the Asia-Pacific segment, revenues and fee revenues came in at $867.9 million and $271.6 million, respectively, marking a year-over-year increase of 21% and 37%. This was driven by rebound in transaction-based revenues. Also, business growth in Valuation Advisory, particularly in Australia, resulted in the revenue increase in Advisory, Consulting and Other.
Revenues and fee revenues in the LaSalle segment increased 16% and 14% year over year to $115.8 million and $108.5, respectively. This was aided by advisory fees, mainly reflecting continued growth of open-end investment vehicles and recent valuation increases.
At the end of second-quarter 2021, assets under management were $73.4 billion, up 4% from the last quarter end, reflecting net valuation increases and acquisitions, partially offset by dispositions, withdrawals and foreign currency decreases.
Liquidity
JLL exited second-quarter 2021 with cash and cash equivalents of $494 million, down from $574.3 million as of Dec 31, 2020. Additionally, as of Jun 30, 2021, the company’s net debt amounted to $648.5 million, marking a decrease of $21.7 million from the prior-quarter end and a decline of $421.2 million from the year-ago quarter end.
In second-quarter 2021, the company repurchased 200,000 shares for $41.1 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 15.66% due to these changes.
VGM Scores
Currently, Jones Lang LaSalle has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Jones Lang LaSalle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.