We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jones Lang's (JLL) Q2 Earnings & Revenues Beat Estimates
Read MoreHide Full Article
Shares of Jones Lang LaSalle Incorporated (JLL - Free Report) — popularly known as JLL — were up nearly 0.9% during the Aug 6 regular trading session on the NYSE following the announcement of a better-than-expected performance by the company in the second quarter.
JLL reported second-quarter 2024 adjusted earnings per share (EPS) of $2.55, which beat the Zacks Consensus Estimate of $2.30. The reported figure increased from the prior-year quarter’s number of $2.12.
Results reflect better-than-anticipated revenues. The company benefited from the continued strength in its resilient lines of business and decent growth in transactional revenues. JLL also gained from its cost management efforts.
Revenues of $5.63 billion increased 11.4% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $5.35 billion.
Per Christian Ulbrich, CEO of JLL, "We are pleased with our second quarter results as Work Dynamics led strong resilient revenue growth and our transactional business lines benefited from investments we have made to take advantage of greater commercial real estate activity.”
Segment-Wise Performance
During the second quarter, the Markets Advisory segment’s revenues came in at $1.08 billion, reflecting a year-over-year increase of 5.2% (in USD). The rise was mainly driven by Leasing, which reported growth in most geographies, particularly in the United States, Greater China, India and Germany. Leasing growth was led by the office sector, which witnessed increased deal size and transaction volumes, partly offset by industrial that saw a decline in both deal size and volume.
Meanwhile, growth in Property Management revenues was driven by expansion in the Americas and Asia Pacific, including incremental revenues associated with pass-through expenses.
Revenues for the Capital Markets segment were $457.6 million, increasing 2.1% (in USD) year over year. Despite macroeconomic headwinds, this segment achieved broad-based revenue growth across all business lines. Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR, increased in the office, industrial and hotels sectors.
JLL’s Work Dynamics segment reported revenues of $3.93 billion, up 16.6% (in USD) year over year. The uptick in revenues was driven by continued strong performance in Workplace Management with Americas contract wins and mandate expansions from 2023 onboarding. Project Management revenues also grew year over year, mainly in the Americas and Asia Pacific.
However, the JLL Technologies segment reported revenues of $56.4 million, declining 6.9% (in USD) from the prior-year quarter levels. The fall was partially due to lower contract signings over the last few quarters. Moreover, the lower revenues reflected delayed decisions on technology spend from existing solutions clients, which included certain contract renewals.
The revenues in the LaSalle segment fell 28.7% (in USD) year over year to $102.6 million. The decline in revenues was mainly due to a decrease in incentive fees and lower advisory fees because of lower assets under management (AUM). This is further attributable to lower fees in Europe as a result of structural changes to a lower-margin business.
As of Jun 30, 2024, LaSalle had $86.6 billion of AUM, down from $93.2 billion as of Jun 30, 2023. This resulted from dispositions and withdrawals, net valuation decreases, foreign currency decreases and a decline in uncalled committed capital and cash held, partially offset by acquisitions.
Balance Sheet
JLL exited the second quarter of 2024 with cash and cash equivalents of $424.4 million, up from $396.7 million at the end of the first quarter and $410 million as of Dec 31, 2023.
As of Jun 30, 2024, the net leverage ratio was 1.7, down from 1.9 as of Mar 31, 2024 and 2.0 as of Jun 30, 2023. The corporate liquidity was $2.45 billion as of the second quarter's end, up from $2.3 billion as of the first quarter’s end.
The company repurchased 103,701 shares during the reported quarter for $20.1 million. As of Jun 30, 2024, $1.053 billion remained authorized for repurchase under the share repurchase program.
Performance of Another Real Estate Operations Stock
CBRE Group Inc. (CBRE - Free Report) reported a second-quarter 2024 core EPS of 81 cents, ahead of the Zacks Consensus Estimate of 69 cents. However, the reported figure declined 1.2% year over year.
Results reflected growth in its resilient lines of business. Global Workplace Solutions experienced strong business wins with a healthy balance of new clients and expansion. The leasing business performed well due to office leasing revenue growth in the United States, driven by strength in New York. CBRE currently carries a Zacks Rank #2 (Buy).
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Jones Lang's (JLL) Q2 Earnings & Revenues Beat Estimates
Shares of Jones Lang LaSalle Incorporated (JLL - Free Report) — popularly known as JLL — were up nearly 0.9% during the Aug 6 regular trading session on the NYSE following the announcement of a better-than-expected performance by the company in the second quarter.
JLL reported second-quarter 2024 adjusted earnings per share (EPS) of $2.55, which beat the Zacks Consensus Estimate of $2.30. The reported figure increased from the prior-year quarter’s number of $2.12.
Results reflect better-than-anticipated revenues. The company benefited from the continued strength in its resilient lines of business and decent growth in transactional revenues. JLL also gained from its cost management efforts.
Revenues of $5.63 billion increased 11.4% from the year-ago quarter and surpassed the Zacks Consensus Estimate of $5.35 billion.
Per Christian Ulbrich, CEO of JLL, "We are pleased with our second quarter results as Work Dynamics led strong resilient revenue growth and our transactional business lines benefited from investments we have made to take advantage of greater commercial real estate activity.”
Segment-Wise Performance
During the second quarter, the Markets Advisory segment’s revenues came in at $1.08 billion, reflecting a year-over-year increase of 5.2% (in USD). The rise was mainly driven by Leasing, which reported growth in most geographies, particularly in the United States, Greater China, India and Germany. Leasing growth was led by the office sector, which witnessed increased deal size and transaction volumes, partly offset by industrial that saw a decline in both deal size and volume.
Meanwhile, growth in Property Management revenues was driven by expansion in the Americas and Asia Pacific, including incremental revenues associated with pass-through expenses.
Revenues for the Capital Markets segment were $457.6 million, increasing 2.1% (in USD) year over year. Despite macroeconomic headwinds, this segment achieved broad-based revenue growth across all business lines. Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR, increased in the office, industrial and hotels sectors.
JLL’s Work Dynamics segment reported revenues of $3.93 billion, up 16.6% (in USD) year over year. The uptick in revenues was driven by continued strong performance in Workplace Management with Americas contract wins and mandate expansions from 2023 onboarding. Project Management revenues also grew year over year, mainly in the Americas and Asia Pacific.
However, the JLL Technologies segment reported revenues of $56.4 million, declining 6.9% (in USD) from the prior-year quarter levels. The fall was partially due to lower contract signings over the last few quarters. Moreover, the lower revenues reflected delayed decisions on technology spend from existing solutions clients, which included certain contract renewals.
The revenues in the LaSalle segment fell 28.7% (in USD) year over year to $102.6 million. The decline in revenues was mainly due to a decrease in incentive fees and lower advisory fees because of lower assets under management (AUM). This is further attributable to lower fees in Europe as a result of structural changes to a lower-margin business.
As of Jun 30, 2024, LaSalle had $86.6 billion of AUM, down from $93.2 billion as of Jun 30, 2023. This resulted from dispositions and withdrawals, net valuation decreases, foreign currency decreases and a decline in uncalled committed capital and cash held, partially offset by acquisitions.
Balance Sheet
JLL exited the second quarter of 2024 with cash and cash equivalents of $424.4 million, up from $396.7 million at the end of the first quarter and $410 million as of Dec 31, 2023.
As of Jun 30, 2024, the net leverage ratio was 1.7, down from 1.9 as of Mar 31, 2024 and 2.0 as of Jun 30, 2023. The corporate liquidity was $2.45 billion as of the second quarter's end, up from $2.3 billion as of the first quarter’s end.
The company repurchased 103,701 shares during the reported quarter for $20.1 million. As of Jun 30, 2024, $1.053 billion remained authorized for repurchase under the share repurchase program.
JLL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise
Jones Lang LaSalle Incorporated price-consensus-eps-surprise-chart | Jones Lang LaSalle Incorporated Quote
Performance of Another Real Estate Operations Stock
CBRE Group Inc. (CBRE - Free Report) reported a second-quarter 2024 core EPS of 81 cents, ahead of the Zacks Consensus Estimate of 69 cents. However, the reported figure declined 1.2% year over year.
Results reflected growth in its resilient lines of business. Global Workplace Solutions experienced strong business wins with a healthy balance of new clients and expansion. The leasing business performed well due to office leasing revenue growth in the United States, driven by strength in New York. CBRE currently carries a Zacks Rank #2 (Buy).