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Jones Lang LaSalle (JLL) Up 0.1% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Jones Lang LaSalle (JLL - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jones Lang LaSalle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Jones Lang LaSalle Q4 Earnings Top Estimates
Jones Lang LaSalle Inc. reported fourth-quarter 2021 adjusted earnings of $8.66 per share, beating the Zacks Consensus Estimate of $6.68. The reported figure was also significantly ahead of the prior-year quarter’s figure of $5.29. Results reflect strong rebound in its transaction-based businesses.
Revenues for the quarter came in at $5.9 billion, surpassing the Zacks Consensus Estimate of $5.5 billion and 22.7% higher than the year-ago quarter’s tally.
JLL’s results reflect the strength in Leasing and Capital markets as well as valuation increases on its strategic technological investments. Apart from this, the quarterly adjusted EBITDA margin, calculated on a fee-revenue basis, was 22.4% (same in the local currency) compared with 21.3% in 2020.
Behind the Headline Numbers
During the December-end quarter, JLL’s Real Estate Services (RES) revenues climbed 22% (23% in the local currency) year over year to $5.78 billion, highlighting broad-based growth across all service lines, and were led by the Leasing and Capital Markets.
In America, revenues and fee revenues came in at $3.66 billion and $1.7 billion, respectively, reflecting a 27% and 56% year-over-year jump. This reflected continued growth in transaction-based service lines. Growth in Leasing was fueled by higher transaction volumes and an increase in the average deal size in the United States, with a strong performance across all sectors, especially the office and industrial sectors. The growth in Capital Markets reflected investment sales nearly doubling year over year, the continued momentum in debt and equity advisory as well as a rise in servicing revenues from the multi-housing business. Property & Facility Management fee revenues were driven by new client wins and the expansion of existing client mandates in Work Dynamics.
Revenues and fee revenues in the EMEA segment came in at $1.1 billion and $574.1 million, up 16% and 21%, respectively, from the year-ago period. This was driven by transaction-based revenues, reflecting the continued recovery in most geographies. The growth in Capital Markets reflected higher deal volumes in investment sales across all sectors, particularly in the industrial and office sectors, compared with 2020. The increase in Leasing revenue marked transaction volume increases, mainly in the office and industrial sectors, and an increase in the average deal size.
In the Asia-Pacific segment, revenues and fee revenues came in at $1.0 billion and $364.7 million, respectively, marking a year-over-year increase of 11% and 19%. This was driven by the rebound in transaction-based revenues. Also, business growth continued in Valuation Advisory, mainly in Australia, resulting in the fee revenue increase in Advisory, Consulting and Other.
Revenues and fee revenues in the LaSalle segment increased 53% and 54% year over year to $163.3 million and $156.0 million, respectively. This was driven by higher incentives and advisory fees.
At the end of 2021, real estate assets under management were $76.6 billion, up 3% from the last quarter end, reflecting acquisitions, net valuation increases, partially offset by dispositions and withdrawals and foreign currency decreases.
Liquidity
JLL exited 2021 with cash and cash equivalents of $593.7 million, up from $574.3 million as of Dec 31, 2020. Additionally, as of Dec 31, 2021, the company’s net debt amounted to $375.9 million, marking a decrease of $111.4 million from the prior-quarter end. The net leverage ratio was 0.2 as of Dec 31, 2021, down from 0.4 as of Sep 30, 2021. Corporate liquidity was $3.2 billion as of Dec 31, 2021.
In the fourth quarter of 2021, the company repurchased 592,840 shares for $152.3 million. In February 2022, the company's board of directors authorized an additional $1.5 billion for share repurchases.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 23.33% 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. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.
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) Up 0.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Jones Lang LaSalle (JLL - Free Report) . Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Jones Lang LaSalle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Jones Lang LaSalle Q4 Earnings Top Estimates
Jones Lang LaSalle Inc. reported fourth-quarter 2021 adjusted earnings of $8.66 per share, beating the Zacks Consensus Estimate of $6.68. The reported figure was also significantly ahead of the prior-year quarter’s figure of $5.29. Results reflect strong rebound in its transaction-based businesses.
Revenues for the quarter came in at $5.9 billion, surpassing the Zacks Consensus Estimate of $5.5 billion and 22.7% higher than the year-ago quarter’s tally.
JLL’s results reflect the strength in Leasing and Capital markets as well as valuation increases on its strategic technological investments. Apart from this, the quarterly adjusted EBITDA margin, calculated on a fee-revenue basis, was 22.4% (same in the local currency) compared with 21.3% in 2020.
Behind the Headline Numbers
During the December-end quarter, JLL’s Real Estate Services (RES) revenues climbed 22% (23% in the local currency) year over year to $5.78 billion, highlighting broad-based growth across all service lines, and were led by the Leasing and Capital Markets.
In America, revenues and fee revenues came in at $3.66 billion and $1.7 billion, respectively, reflecting a 27% and 56% year-over-year jump. This reflected continued growth in transaction-based service lines. Growth in Leasing was fueled by higher transaction volumes and an increase in the average deal size in the United States, with a strong performance across all sectors, especially the office and industrial sectors. The growth in Capital Markets reflected investment sales nearly doubling year over year, the continued momentum in debt and equity advisory as well as a rise in servicing revenues from the multi-housing business. Property & Facility Management fee revenues were driven by new client wins and the expansion of existing client mandates in Work Dynamics.
Revenues and fee revenues in the EMEA segment came in at $1.1 billion and $574.1 million, up 16% and 21%, respectively, from the year-ago period. This was driven by transaction-based revenues, reflecting the continued recovery in most geographies. The growth in Capital Markets reflected higher deal volumes in investment sales across all sectors, particularly in the industrial and office sectors, compared with 2020. The increase in Leasing revenue marked transaction volume increases, mainly in the office and industrial sectors, and an increase in the average deal size.
In the Asia-Pacific segment, revenues and fee revenues came in at $1.0 billion and $364.7 million, respectively, marking a year-over-year increase of 11% and 19%. This was driven by the rebound in transaction-based revenues. Also, business growth continued in Valuation Advisory, mainly in Australia, resulting in the fee revenue increase in Advisory, Consulting and Other.
Revenues and fee revenues in the LaSalle segment increased 53% and 54% year over year to $163.3 million and $156.0 million, respectively. This was driven by higher incentives and advisory fees.
At the end of 2021, real estate assets under management were $76.6 billion, up 3% from the last quarter end, reflecting acquisitions, net valuation increases, partially offset by dispositions and withdrawals and foreign currency decreases.
Liquidity
JLL exited 2021 with cash and cash equivalents of $593.7 million, up from $574.3 million as of Dec 31, 2020. Additionally, as of Dec 31, 2021, the company’s net debt amounted to $375.9 million, marking a decrease of $111.4 million from the prior-quarter end. The net leverage ratio was 0.2 as of Dec 31, 2021, down from 0.4 as of Sep 30, 2021. Corporate liquidity was $3.2 billion as of Dec 31, 2021.
In the fourth quarter of 2021, the company repurchased 592,840 shares for $152.3 million. In February 2022, the company's board of directors authorized an additional $1.5 billion for share repurchases.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 23.33% 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. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.
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.