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Jones Lang LaSalle (JLL) Surpasses Q1 Earnings Estimates
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Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — reported first-quarter 2019 adjusted earnings of 89 cents per share, surpassing the Zacks Consensus Estimate of 69 cents. However, the bottom-line figure compares unfavorably with the year-ago adjusted earnings of 97 cents per share.
Revenues for the reported quarter came in at around $3.8 billion, outpacing the Zacks Consensus Estimate of $3.72 billion. The reported figure improved 7%, year over year. Fee revenues were up 3% year over year to $1.3 billion.
Results highlight robust organic Real Estate Services revenue growth, aided by Leasing and Corporate Solutions segments. Further, the Americas’ segment performance and Asia-Pacific improvement helped expand margin. In addition, assets under management reached a record $64.3 billion.
Behind the Headline Numbers
During the reported quarter, JLL’s Real Estate Services revenues climbed 8% year over year to $3.7 billion. In the Americas, revenues and fee revenues came in at $2.2 billion and $711 million, respectively, indicating 16% and 14% year-over-year growth.
This was backed by growth in the leasing, reflecting momentum in the New York, Midwest and Northwest U.S. markets. Also, growth in the Property & Facility Management segment contributed to the Americas’ performance.
Revenues and fee revenues of the EMEA segment came in at $723.4 million and $316.1 million, down 8% and 10%, respectively, from the year-ago period. Results reflect declines in other service lines, primarily Capital Markets. Furthermore, service lines in the U.K. and France had the most significant decline in fee revenue.
For the Asia-Pacific segment, revenues and fee revenues came in at $748.7 million and $198.2million, respectively, marking year-over-year jump of 5% and 2%, respectively. Results highlight improved revenues from Property & Facility Management due to new client wins and expansion of client mandates.
Revenues from the LaSalle Investment Management segment recorded decline of 18% year over year to $98.4 million. Year-over-year decline in incentive fees dented revenues.
At the end of first-quarter 2019, assets under management were $64.3 billion, up 6% from $60.5 billion recorded at the end of the last quarter.
Liquidity
Jones Lang exited the reported quarter with cash and cash equivalents of $389.5 million, down from $480.9 million as of Dec 31, 2018. Moreover, the company’s net debt totaled $980.1 million at the end of 2019, denoting an increase of $690.8 million and $70 million from Dec 31, 2018 and Mar 31, 2018, respectively.
Our Viewpoint
JLL’s January-March quarter performance is encouraging. The company has a diversified product & services range which helps register balanced revenue growth across its operating markets. In addition, in a bid to boost its full-service Capital Markets business, the company announced that it will buy HFF, Inc., in a cash-and-stock deal, valued at about $2 billion. The acquisition will be accretive to adjusted earnings per share in the first full financial year after completion.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
We now look forward to the earnings releases of CBRE Group Inc. (CBRE - Free Report) scheduled to report quarterly numbers on May 8 and Retail Value Inc. set to post first-quarter numbers today, after market closes.
RE/MAX Holdings, Inc. (RMAX - Free Report) posted first-quarter2019 earnings of 48 cents per share, in line with the Zacks Consensus Estimate. However, it compared unfavorably with the year-ago tally of 49 cents.
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Image: Bigstock
Jones Lang LaSalle (JLL) Surpasses Q1 Earnings Estimates
Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — reported first-quarter 2019 adjusted earnings of 89 cents per share, surpassing the Zacks Consensus Estimate of 69 cents. However, the bottom-line figure compares unfavorably with the year-ago adjusted earnings of 97 cents per share.
Revenues for the reported quarter came in at around $3.8 billion, outpacing the Zacks Consensus Estimate of $3.72 billion. The reported figure improved 7%, year over year. Fee revenues were up 3% year over year to $1.3 billion.
Results highlight robust organic Real Estate Services revenue growth, aided by Leasing and Corporate Solutions segments. Further, the Americas’ segment performance and Asia-Pacific improvement helped expand margin. In addition, assets under management reached a record $64.3 billion.
Behind the Headline Numbers
During the reported quarter, JLL’s Real Estate Services revenues climbed 8% year over year to $3.7 billion. In the Americas, revenues and fee revenues came in at $2.2 billion and $711 million, respectively, indicating 16% and 14% year-over-year growth.
This was backed by growth in the leasing, reflecting momentum in the New York, Midwest and Northwest U.S. markets. Also, growth in the Property & Facility Management segment contributed to the Americas’ performance.
Revenues and fee revenues of the EMEA segment came in at $723.4 million and $316.1 million, down 8% and 10%, respectively, from the year-ago period. Results reflect declines in other service lines, primarily Capital Markets. Furthermore, service lines in the U.K. and France had the most significant decline in fee revenue.
For the Asia-Pacific segment, revenues and fee revenues came in at $748.7 million and $198.2million, respectively, marking year-over-year jump of 5% and 2%, respectively. Results highlight improved revenues from Property & Facility Management due to new client wins and expansion of client mandates.
Revenues from the LaSalle Investment Management segment recorded decline of 18% year over year to $98.4 million. Year-over-year decline in incentive fees dented revenues.
At the end of first-quarter 2019, assets under management were $64.3 billion, up 6% from $60.5 billion recorded at the end of the last quarter.
Liquidity
Jones Lang exited the reported quarter with cash and cash equivalents of $389.5 million, down from $480.9 million as of Dec 31, 2018. Moreover, the company’s net debt totaled $980.1 million at the end of 2019, denoting an increase of $690.8 million and $70 million from Dec 31, 2018 and Mar 31, 2018, respectively.
Our Viewpoint
JLL’s January-March quarter performance is encouraging. The company has a diversified product & services range which helps register balanced revenue growth across its operating markets. In addition, in a bid to boost its full-service Capital Markets business, the company announced that it will buy HFF, Inc., in a cash-and-stock deal, valued at about $2 billion. The acquisition will be accretive to adjusted earnings per share in the first full financial year after completion.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise | Jones Lang LaSalle Incorporated Quote
JLL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Competitive Landscape
We now look forward to the earnings releases of CBRE Group Inc. (CBRE - Free Report) scheduled to report quarterly numbers on May 8 and Retail Value Inc. set to post first-quarter numbers today, after market closes.
RE/MAX Holdings, Inc. (RMAX - Free Report) posted first-quarter2019 earnings of 48 cents per share, in line with the Zacks Consensus Estimate. However, it compared unfavorably with the year-ago tally of 49 cents.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>