Jones Lang Lasalle Inc. Earnings Cheat Sheet: Snaps Strong Streak with Profit Drop

Rising revenue was not enough for Jones Lang Lasalle Inc. (NYSE:JLL) as the property management company saw profit fall in the third quarter. Jones Lang LaSalle provides integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients.

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Jones Lang Lasalle Earnings Cheat Sheet for the Third Quarter

Results: Net income for the property management company fell to $34 million (76 cents per share) vs. $37.1 million (84 cents per share) a year earlier. This is a decline of 8.4% from the year earlier quarter.

Revenue: Rose 27.8% to $903 million from the year earlier quarter.

Actual vs. Wall St. Expectations: JLL reported adjusted net income of $1.12 per share. By that measure, the company beat the mean estimate of $1.09 per share. It beat the average revenue estimate of $857.3 million.

Quoting Management: “Our third-quarter results were solid, and we continue to see healthy business pipelines into our seasonally strong fourth quarter,” said Colin Dyer, President and Chief Executive Officer. “While helping our clients keep a careful watch on market conditions, we are extending our winning competitive position with increased market share and superior service delivery,” Dyer added.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 22%, with the biggest boost coming in the most recent quarter when revenue rose 27.8% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 37.9% from the year earlier, while the figure increased more than sixfold in the first quarter, 66.9% in the fourth quarter of the last fiscal year and 87.8% in the third quarter of the last fiscal year.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $1.12 versus a mean estimate of net income of $1.10 per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $2.49 per share to $2.28, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $4.49 per share, the average estimate for the fiscal year has fallen from $4.83 ninety days ago.

Competitors to Watch: CB Richard Ellis Group, Inc. (NYSE:CBG), Grubb & Ellis Company (NYSE:GBE), Kennedy-Wilson Hldgs., Inc. (NYSE:KW), FirstService Corp. (NASDAQ:FSRV), ZipRealty, Inc. (NASDAQ:ZIPR), E-House (NASDAQ:CHINA) Hldgs. Ltd. (NYSE:EJ), HFF, Inc. (NYSE:HF), EMCOR Group, Inc. (NYSE:EME), Terreno Realty Corporation (NYSE:TRNO), and IFM Investments Ltd. (NYSE:CTC).

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(Source: Xignite Financials)