(JLL) - company beat analysts' second-quarter earnings expectations by 90.2%

Jones Lang LaSalle Incorporated (JLL), which was first highlighted as a Growth and Income stock on Dec 29, has achieved the coveted status of Zacks #1 Rank (strong buy). The company beat analysts' second-quarter earnings expectations by 90.2%. JLL's return on equity crushes that of the industry average--28% compared to 8%. Full Analysis Jones Lang LaSalle Incorporated is engaged in real estate services and money management on a local, regional and global level to owner, occupier and investor clients. The company has more than 100 offices worldwide and operates in more than 430 cities in 50 countries. It has been quite some time since JLL was first highlighted as a Growth and Income stock on Dec 29. More than eight months ago, the stock was a Zacks #2 (buy). Today, due primarily to earnings estimate revisions and positive EPS surprises, JLL has been crowned a Zacks #1 Rank (strong buy). Over the past two quarters, the company exceeded analysts' earnings expectations by an average margin of 118.9%. On Jul 25, JLL reported second-quarter profits of $66.2 million, or $1.94 per share. This resulted in a 90.2% positive earnings surprise and a 162.2% year-over-year improvement when compared to the $24.8 million, or 74 cents. Revenue growth was strong among all of the company's operating segments, soaring 56.8% to $509.8 million. For the first six months of the year, profits came in at $70.8 million, versus $16.2 million in the first half of 2005. Revenues experienced a 49.8% jump and finished at $846.9 million. JLL increased revenues for the past three years while growing profits for six years running. The consensus estimate for this year currently sits at $4.26. This represents a 9.0% increase when compared to the consensus of 60 days ago. Profit forecasts for 2007 have risen 4.9% to $4.49 over the same period of time. Earnings per share are forecasted to grow 15% over the next 3-5 years, which is in line with the projected industry growth rate. On Apr 19, the Board of Directors declared a semi-annual cash dividend of 25 cents per share of common stock. The company has a current dividend yield of 0.60%. Management has been very successful in generating a profit with shareholder money. The company's return on equity is more than three times greater than that of the industry average—28% compared to 8%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home