Cushman & Wakefield ( CWK ) tops Q2 revenue and earnings estimates

Cushman & Wakefield (CWK) came in with quarterly earnings of $0.22 per share, beating the Zacks’ consensus estimate of $0.21 per share. That compares with earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 4.76%. Last quarter, this company was expected to post earnings of $0.19 per share, when it actually produced a loss of $0.04, giving a surprise of -121.05%.

Over the past four quarters, the company has only beaten consensus EPS estimates once.

Cushman & Wakefield, which belongs to the Zacks Real Estate – Operations industry, reported revenue of $2.41 billion for the quarter ending June 2023, beating the Zacks’ consensus estimate by 2.25%. That compares with last year’s revenue of $2.61 billion. The company has beaten consensus revenue estimates four times over the past four quarters.

The sustainability of the stock’s immediate price movement based on recently released numbers and future earnings expectations will largely depend on management’s comments on the earnings call.

Cushman & Wakefield shares have lost about 22.6% since the start of the year, compared with the S&P 500’s gain of 19.3%.

What’s next for Cushman & Wakefield?

While Cushman & Wakefield has underperformed the market so far this year, the question on investors’ minds is: What’s next for the stock?

There are no easy answers to this key question, but one sure measure that can help investors sort this out is the company’s earnings outlook. It not only includes current consensus earnings expectations for the next quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and earnings estimate revision trends. Investors can track such revisions themselves or rely on a tried and tested valuation tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, Cushman & Wakefield’s estimate revision trend: Unfavorable. While the magnitude and direction of the estimate revisions could change following the company’s recently released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the stock is expected to underperform the market in the near future. You can see today’s full list of Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the upcoming quarters and the current fiscal year change in the coming days. The current EPS consensus estimate is $0.37 on $2.49 billion in revenue for next quarter and $1.04 on $9.81 billion in revenue for the current fiscal year.

Investors should be aware that the outlook for the industry can also have a significant impact on stock performance. In terms of Zacks Industry Rank, Real Estate – Operations currently ranks in the bottom 15% of the 250+ Zacks Industries. Our research shows that the top 50% of Zacks ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same industry, Jones Lang LaSalle (JLL), has yet to report results for the quarter ending June 2023. The results are expected to be released on August 3.

This financial and professional services company is expected to post quarterly earnings of $2.20 per share in its upcoming report, which represents a year-over-year change of -50.9%. The EPS consensus estimate for the quarter was revised 5.1% lower over the past 30 days to the current level.

Jones Lang LaSalle’s revenue is expected to be $5.03 billion, down 4.7% from the year-ago quarter.

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