NYSE$CWK

Cushman & Wakefield PLC · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Cushman & Wakefield's financial performance declined due to a challenging macroeconomic environment impacting transaction volumes, particularly in Leasing and Capital Markets, but was partially offset by growth in Property, facilities and project management.

Cushman & Wakefield reported a decrease in revenue and a net loss for the first quarter of 2023. Revenue decreased by 4% to $2.2 billion, and the company experienced a net loss of $76.4 million, compared to a net income of $45.5 million in the same quarter of the previous year. The decline was primarily due to lower brokerage revenue, particularly in Leasing and Capital Markets, although Property, facilities and project management grew. The company is focused on operating efficiency and cost savings initiatives to navigate the challenging environment.

  • Revenue decreased by 4% to $2.2 billion, with service line fee revenue down 12%.
  • Net loss was $76.4 million, with a diluted loss per share of $0.34.
  • Adjusted EBITDA decreased by 72% to $60.9 million.
  • The company generated $21 million of gross cost savings and expects $90 million annualized.

Headline financials

Total Revenue

$2.25B

Previous: $2.33B-3.5%
EPS (adj)

-$0.04

Previous: $0.48-108.3%
Adjusted EBITDA

$60.9M

Previous: $214M-71.6%
Adjusted EBITDA Margin

4.0%

Previous: 12.6%-68.3%
Net Income Margin

-3.4%

No prior period
Capital Expenditures

-$10M

Previous: -$18.9M+47.1%
Free Cash Flow

-$86.4M

Previous: $26.6M-424.8%
Net Income

-$76.4M

Previous: $45.5M-267.9%
Operating Income

-$18.3M

Previous: $135M-113.5%
Gross Profit

-$1.91B

Previous: -$1.86B-2.5%
Cash & Equivalents

$460M

Previous: $612M-24.9%
Total Assets

$7.62B

Previous: $7.76B-1.7%
Stock-Based Comp

$11.3M

Previous: $8.7M+29.9%

Revenue & EPS history

Cushman & Wakefield · Revenue · Quarterly

$2.25B

Q1 2023-3.5%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Cushman & Wakefield · $2.11B total across 4 segments · Q1 2023

  • Services
    $1.5B-11.8%
  • Leasing
    $363M-20.3%
  • Capital Markets
    $143M-50.6%
  • Valuation & Other
    $102M-15.3%

Forward guidance

Cushman & Wakefield expects to realize annualized gross cost savings of $90 million for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-2.3%

Avg return

30 days after

42%

15 / 36 earnings

Positive

+16.4%

Q3 2024

Best reaction

-13.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.4%-7.7%-7.6%
Q4 2025-3.2%+0.1%-12.7%
Q3 2025-2.1%-5.4%+1.3%
Q1 2025+4.4%+11.9%+12.4%
Q4 2024-6.0%-8.9%-19.8%
Q3 2024+16.4%+14.5%+16.0%
Q2 2024-5.2%-8.4%-4.3%
Q1 2024-0.7%+3.1%+10.8%
Q4 2023-13.1%-14.7%-11.2%
Q3 2023+10.3%+23.7%+24.6%
Q2 2023+6.1%+6.9%-4.6%
Q1 2023-13.9%-17.3%-7.9%
Q4 2022-2.4%-2.7%-26.4%
Q3 2022-2.4%-3.0%+10.3%
Q2 2022-4.2%-5.2%-12.5%
Q1 2022-2.8%-6.0%-5.7%
Q4 2021+4.5%-3.6%-9.0%
Q3 2021+6.5%+2.7%+0.4%
Q2 2021-0.9%-1.5%-3.9%
Q1 2021+6.7%+2.3%+3.3%
Q4 2020-9.7%-13.2%-3.4%
Q3 2020-3.8%+10.5%+26.0%
Q2 2020+1.8%+8.3%+8.1%
Q1 2020+3.3%-9.8%+23.6%
Q4 2019+5.6%+8.3%-30.9%
Q3 2019-4.5%-2.3%-0.9%
Q2 2019-6.1%-11.6%-15.1%
Q1 2018-6.1%-7.1%-7.2%
Q1 2019-6.2%-7.4%-11.8%
Q2 2018-1.4%-0.4%-5.7%
Q4 2018-0.4%+3.0%-3.3%
Q3 2017+8.5%+8.4%-1.4%
Q3 2018+13.2%+11.0%+4.1%
Q1 2017+2.2%+5.9%-5.8%
Q2 2017+2.2%+5.9%-5.8%
Q4 2017+2.2%+4.3%-5.7%

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