Will Jones Lang LaSalle Incorporated's (NYSE:JLL) Earnings Grow Over The Next Year?
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In December 2018, Jones Lang LaSalle Incorporated (NYSE:JLL) announced its earnings update. Overall, analysts seem cautiously optimistic, with earnings expected to grow by 6.0% in the upcoming year relative to the past 5-year average growth rate of 0.5%. Presently, with latest-twelve-month earnings at US$484m, we should see this growing to US$513m by 2020. Below is a brief commentary around Jones Lang LaSalle's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
See our latest analysis for Jones Lang LaSalle
What can we expect from Jones Lang LaSalle in the longer term?
The 8 analysts covering JLL view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of JLL's earnings growth over these next few years.
This results in an annual growth rate of 7.2% based on the most recent earnings level of US$484m to the final forecast of US$587m by 2022. This leads to an EPS of $12.91 in the final year of projections relative to the current EPS of $10.64. By the end of 2022, analysts are expecting earnings to outpace revenue, and margins to expand from the current 5.3% to 5.8%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Jones Lang LaSalle, there are three fundamental factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Jones Lang LaSalle worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Jones Lang LaSalle is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Jones Lang LaSalle? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
