Commercial real estate services firm Cushman & Wakefield (CWK) reported a narrower loss in the third quarter helped by the increase in Fee revenue exceeding the increase in Fee-based operating expenses and a higher benefit from income taxes.
Net loss decreased to $48.7 million or $0.26 per share from $78.6 million or $0.55 per share in the previous year quarter. Adjusted earnings soared 181% to $0.45 per share.
Revenue grew 21% to $2.1 billion. Fee revenue increased 17% reflecting increases primarily in Leasing, Capital markets, and Property, facilities, and project management. Leasing Fee revenue increased 30% driven by an America’s increase of 33%, with the remainder of the Fee revenue growth primarily in EMEA.
Capital markets Fee revenue increased by 34% driven by America’s increase of 42%. Property, facilities and project management Fee revenue rose by 6% helped by an America’s rise of 5% with the remainder of the Fee revenue growth primarily in EMEA.
Gross contract costs, primarily in the Property, facilities and project management service line, increased $149.6 million driven by the $98.5 million impacts of the adoption of Topic 606. Foreign currency had a 3% unfavorable impact on Revenue.
Looking ahead into the full year 2018, the company now expects adjusted EBITDA in the range of $630 million to $650 million.
Shares of Cushman & Wakefield ended Tuesday’s regular session up 2.25% at $16.85 on the NYSE. The stock has fallen over 28% since its IPO listing on August 2, 2018.