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Jones Lang LaSalle (JLL) Q4 Earnings & Revenues Top Estimates
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Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — delivered fourth-quarter adjusted earnings of $6.35 per share, surpassing the Zacks Consensus Estimate of $5.73. The bottom-line figure also compares favorably with the year-ago adjusted earnings of $5.99 per share.
Revenues for the fourth quarter came in at around $5.4 billion, outpacing the Zacks Consensus Estimate of $5.3 billion by 1.3%. The reported figure improved 10.4%, year over year. Moreover, fee revenues were up 12% year over year to $2.37 billion.
Results highlight robust Real Estate Services revenue growth. The company witnessed solid performance of the Americas. Moreover, continued progress on HFF Inc. integration resulted in solid Capital Markets performance.
However, with respect to the real estate market outlook, it needs to be noted that the global environment remains cautious and investment volumes in 2020 are likely to moderate from the 2019 levels. Also, leasing in the current year is anticipated to be lower from the previous year.
Shares of JLL fell 4.25% to $165.17 during Tuesday's regular trading session.
For full-year 2019, JLL reported adjusted earnings of $14.09, denoting an increase of 15% from the prior-year tally of $12.25. This surge was backed by 10.2% year-over-year growth in revenues to $17.98 billion.
Behind the Headline Numbers
During the December-end quarter, JLL’s Real Estate Services revenues climbed 10% year over year to $5.2 billion. Result reflected solid Capital Markets performance, largely due to the Jul 1, 2019, acquisition of HFF Inc., along with a robust quarter in Asia Pacific.
In the Americas, revenues and fee revenues came in at $3.18 billion and $1.28 billion, respectively, indicating 15.7% and 22.1% year-over-year growth. Growth was strong and broad-based across all service lines. This was backed by Capital Markets. HFF reaped $203.2 million of incremental revenues, reflecting strong contributions from debt placement. Further, Project & Development Services fee revenues climbed year on year, mirroring large project wins in the United States.
Revenues and fee revenues of the EMEA segment came in at $1.07 billion and $559.8 million, up 0.7% but down 2.5%, respectively, from the year-ago period. Solid performance in Project & Development Services, particularly projects in MENA, as well as the valuations business was more than offset by declines in Capital Markets and Leasing, mainly due to decreases in the U.K., France and Germany.
For the Asia-Pacific segment, revenues and fee revenues came in at $969.8 million and $353.8 million, respectively, marking year-over-year jump of 3.8% and 0.6%. The segment experienced significant revenue and fee revenue growth in Capital Markets during the quarter, mainly driven by large deals in Singapore and Japan. However, the decline in leasing revenues reflects choppy market conditions in Hong Kong and China amid geopolitical tensions. Moreover, the drop in Property & Facility Management fee revenues was mainly due to client turnover and timing.
Revenues in the LaSalle segment increased 24.2% year over year to $186.7 million. Growth in annuity revenues for the quarter was mainly due to continued strong private equity capital raising during the year and fees from incremental assets under management from recent buyouts.
At the end of fourth-quarter 2019, assets under management were $67.6 billion, down marginally from the $67.8 billion recorded at the end of the last quarter.
Liquidity
JLL exited the fourth quarter with cash and cash equivalents of $451.9 million, down from $480.9 million as of Dec 31, 2018.
In addition, the company’s net debt totaled $860.9 million as of Dec 31, 2019, denoting decreases of $618.8 million from Sep 30, 2019. However, the figure marked an increase of $633.9 million from Dec 31, 2018, reflecting around $840 million of net cash outflow to acquire HFF, offset by strong cash generation in fourth-quarter 2019.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
We, now, look forward to the earnings releases of CBRE Group (CBRE - Free Report) , Realogy Holdings Corp. , Kennedy-Wilson Holdings, Inc. (KW - Free Report) later this month.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Jones Lang LaSalle (JLL) Q4 Earnings & Revenues Top Estimates
Jones Lang LaSalle Inc. (JLL - Free Report) — popularly known as JLL — delivered fourth-quarter adjusted earnings of $6.35 per share, surpassing the Zacks Consensus Estimate of $5.73. The bottom-line figure also compares favorably with the year-ago adjusted earnings of $5.99 per share.
Revenues for the fourth quarter came in at around $5.4 billion, outpacing the Zacks Consensus Estimate of $5.3 billion by 1.3%. The reported figure improved 10.4%, year over year. Moreover, fee revenues were up 12% year over year to $2.37 billion.
Results highlight robust Real Estate Services revenue growth. The company witnessed solid performance of the Americas. Moreover, continued progress on HFF Inc. integration resulted in solid Capital Markets performance.
However, with respect to the real estate market outlook, it needs to be noted that the global environment remains cautious and investment volumes in 2020 are likely to moderate from the 2019 levels. Also, leasing in the current year is anticipated to be lower from the previous year.
Shares of JLL fell 4.25% to $165.17 during Tuesday's regular trading session.
For full-year 2019, JLL reported adjusted earnings of $14.09, denoting an increase of 15% from the prior-year tally of $12.25. This surge was backed by 10.2% year-over-year growth in revenues to $17.98 billion.
Behind the Headline Numbers
During the December-end quarter, JLL’s Real Estate Services revenues climbed 10% year over year to $5.2 billion. Result reflected solid Capital Markets performance, largely due to the Jul 1, 2019, acquisition of HFF Inc., along with a robust quarter in Asia Pacific.
In the Americas, revenues and fee revenues came in at $3.18 billion and $1.28 billion, respectively, indicating 15.7% and 22.1% year-over-year growth. Growth was strong and broad-based across all service lines. This was backed by Capital Markets. HFF reaped $203.2 million of incremental revenues, reflecting strong contributions from debt placement. Further, Project & Development Services fee revenues climbed year on year, mirroring large project wins in the United States.
Revenues and fee revenues of the EMEA segment came in at $1.07 billion and $559.8 million, up 0.7% but down 2.5%, respectively, from the year-ago period. Solid performance in Project & Development Services, particularly projects in MENA, as well as the valuations business was more than offset by declines in Capital Markets and Leasing, mainly due to decreases in the U.K., France and Germany.
For the Asia-Pacific segment, revenues and fee revenues came in at $969.8 million and $353.8 million, respectively, marking year-over-year jump of 3.8% and 0.6%. The segment experienced significant revenue and fee revenue growth in Capital Markets during the quarter, mainly driven by large deals in Singapore and Japan. However, the decline in leasing revenues reflects choppy market conditions in Hong Kong and China amid geopolitical tensions. Moreover, the drop in Property & Facility Management fee revenues was mainly due to client turnover and timing.
Revenues in the LaSalle segment increased 24.2% year over year to $186.7 million. Growth in annuity revenues for the quarter was mainly due to continued strong private equity capital raising during the year and fees from incremental assets under management from recent buyouts.
At the end of fourth-quarter 2019, assets under management were $67.6 billion, down marginally from the $67.8 billion recorded at the end of the last quarter.
Liquidity
JLL exited the fourth quarter with cash and cash equivalents of $451.9 million, down from $480.9 million as of Dec 31, 2018.
In addition, the company’s net debt totaled $860.9 million as of Dec 31, 2019, denoting decreases of $618.8 million from Sep 30, 2019. However, the figure marked an increase of $633.9 million from Dec 31, 2018, reflecting around $840 million of net cash outflow to acquire HFF, offset by strong cash generation in fourth-quarter 2019.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
Jones Lang LaSalle Incorporated price-consensus-eps-surprise-chart | Jones Lang LaSalle Incorporated Quote
JLL currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We, now, look forward to the earnings releases of CBRE Group (CBRE - Free Report) , Realogy Holdings Corp. , Kennedy-Wilson Holdings, Inc. (KW - Free Report) later this month.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>