On Mar 14, 2014, we issued an updated research report on
Jones Lang LaSalle Inc.
On Jan 28, aided by solid growth in revenues, Jones Lang LaSalle
reported fourth-quarter 2013 adjusted earnings per share of
$3.33, substantially ahead of the Zacks Consensus Estimate of
$3.10 per share. Also, it came 28% above the year-ago quarter
earnings of $2.60 per share.
Quarterly results benefited from decent growth in fee revenues,
driven by Capital Markets & Hotels and Property &
Facility Management lines as well as improved momentum in
Jones Lang has a broad range of real estate product and services
as well as an extensive knowledge of domestic and international
real estate markets, enabling it to operate as a single-source
provider of real estate solutions. In 2013, the company generated
record fee revenue of $4 billion across its segments, reflecting
a 12% year-over-year increase in local currency. In the fourth
quarter, the company was also selected by Gemalto to act as
adviser for its worldwide real estate operations.
Jones Lang's increased credit facility along with a solid balance
sheet is expected to provide the wherewithal to carry on
investing in growth drivers going forward. In 2013, the company
lowered its net debt by $101 million compared with a year ago to
$437 million. Encouragingly, this represents the company's second
successive year of lowering its debt by over $100 million.
However, structural and political issues have led to inconsistent
and slow paced development of certain Asian markets, such as
China and India. Moreover, Brazil continues to be challenged,
particularly in its leasing markets. Also, cut-throat competition
and unfavorable foreign currency movements remain our concerns.
Over the last 30 days, the Zacks Consensus Estimate for 2014
remained stable at $7.25 per share while that for 2015 moved
north by 0.6% to $8.21 per share. Jones Lang currently has a
Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Some better-ranked stocks in the real estate operations industry
). While HFF carries a Zacks Rank #1 (Strong Buy), FirstService
and Reis have a Zacks Rank #2 (Buy).
FIRSTSERVICE CP (FSRV): Free Stock Analysis
HFF INC-A (HF): Free Stock Analysis Report
JONES LANG LASL (JLL): Free Stock Analysis
REIS INC (REIS): Free Stock Analysis Report
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