A month has gone by since the last earnings report for Jones Lang LaSalle (JLL - Free Report) . Shares have lost about 3.9% 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 drivers. <p style="text-align: justify;"><strong>Jones Lang LaSalle Q2 Earnings In Line, Revenues Top</strong><br /><br />JLL reported second-quarter 2018 adjusted earnings of 2.26 per share, in line with the Zacks Consensus Estimate. The bottom line compares favorably with the year-ago adjusted earnings of $2.17 per share.<br /><br />Revenues for the reported quarter came in at $3.9 billion, surpassing the Zacks Consensus Estimate of $3.7 billion. The reported figure improved 12.4% year over year. Fee revenues were up 13% year over year to $1.5 billion.<br /><br />Results highlight robust organic growth and strong cash flows from operations. The company experienced Real Estate Services revenue growth. Moreover, the company achieved improvement in fee revenues across the Americas and LaSalle.<br /><br /><strong>Behind the Headline Numbers</strong><br /><br />During the quarter under review, JLL’s Real Estate Services revenues climbed 12% year over year to $3.8 billion. In the Americas, revenues and fee revenues came in at $2.1 billion and $768.2 million, respectively, indicating 12% year-over-year growth. Results were driven by Property & Facility Management, and U.S. Leasing revenue growth.<br /><br />Revenues and fee revenues of the EMEA segment were $846.6 million and $388.3 million, up 11% and 5%, respectively, from the year-ago period. This was backed by growth in the Property & Facility Management and Project & Development Services segment.<br /><br />For the Asia-Pacific segment, revenues and fee revenues came in at $1.5 billion and $445.7 million, respectively, marking year-over-year jump of 8% and 10%. Robust investment sales performance in Japan and Singapore, as well as performance in the Advisory, Consulting and Other segment attributed to this growth.<br /><br />Revenues from the LaSalle Investment Management segment witnessed rise of 26% year over year to $91.7 million. Strong incentive fees due to real estate dispositions in the Asia Pacific led to the increase. At the end of the June-end quarter, assets under management were $59.9 billion, up from $59 billion recorded at the end of the last reported quarter.<br /><br /><strong>Liquidity</strong><br /><br />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 second-quarter 2018, the company’s net debt totaled $972.6 million, up $62.5 million from the prior-quarter end.</p>
How Have Estimates Been Moving Since Then?
Fresh estimates followed a flat path over the past two months.
Currently, Jones Lang LaSalle has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Jones Lang LaSalle has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.