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Cushman & Wakefield PLC CWK

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Cushman & Wakefield Reports Solid Q2 Results and Announces CEO Succession by John Forrester

Michael Wong, CFA, CPA Sector Director

Analyst Note

| Michael Wong, CFA, CPA |

Narrow-moat Cushman & Wakefield posted a solid set of numbers in the second quarter, comfortably beating the FactSet consensus estimate of $0.22 per share with a reported adjusted EPS of $0.50. Fee revenue has fully recovered to beyond prepandemic levels, as the company reported second-quarter fee revenue of $1.6 billion, a 34% increase year over year and a 3% increase from the second quarter of 2019. Adjusted EBITDA also came in strong for the current quarter at $220 million, 26% higher than the second quarter of 2019. Adjusted EBITDA margin calculated on a fee-revenue basis was 13.5%, significantly higher than the 10.2% reported in 2020 and 11.1% in 2019. The adjusted EBITDA growth and margin expansion reflect the impact of strong brokerage activity and permanent cost reduction actions, which management believes amounted to around $30 million in the current quarter and will reach $125 million in annualized permanent cost savings. We do not plan to materially change our $22 fair value estimate for the company as we fully incorporate second-quarter results.

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Company Profile

Business Description

Cushman & Wakefield is the third largest commercial real estate services firm in the world with a global headquarters in Chicago. The firm provides various real estate-related services to owners, occupiers and investors. These include brokerage services for leasing and capital markets sales, as well as advisory services such valuation, project management, and facilities management.

125 Old Broad Street
London, EC2N 1AR, United Kingdom
T +44 20132963000
Sector Real Estate
Industry Real Estate Services
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 50,000

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