There May Be Reason for Hope in Cushman & Wakefield’s (NYSE:CWK) Disappointing Earnings

Market for Cushman & Wakefield plc (NYSE:CWK) shares haven’t moved much after posting weak gains recently. We think the weaker headline numbers could be offset by some positive fundamentals.

See our latest analysis for Cushman & Wakefield

NYSE:CWK Earnings and Earnings History May 7, 2024

The impact of unusual items on profit

Importantly, our data indicates that Cushman & Wakefield’s profit was reduced by $96 million due to unusual items over the past year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. We have reviewed thousands of listed companies and found that unusual items are very often unique in nature. And that, after all, is exactly what accounting terminology entails. Assuming those unusual expenses don’t recur, we would therefore expect Cushman & Wakefield to produce a higher profit next year, all else being equal.

This might make you wonder what the analysts are forecasting in terms of future profitability. Fortunately, you can click here to see an interactive chart showing future profitability based on their estimates.

Our take on Cushman & Wakefield’s earnings performance

Since unusual items have hurt Cushman & Wakefield’s earnings over the past year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we think it is likely that Cushman & Wakefield’s statutory profit actually understates its earnings potential! Unfortunately, however, its earnings per share have actually declined over the past year. Of course, we’ve only scratched the surface when it comes to analyzing its earnings; one might also consider margins, projected growth, and return on investment, among other factors. If you want to dive deeper into Cushman & Wakefield, you would also look at what risks they are currently facing. Our analysis shows 4 warning signs for Cushman & Wakefield (1 is potentially serious!) and we strongly recommend you look into these before investing.

Today I zoomed in on a single data point to better understand the nature of Cushman & Wakefield’s profit. But there are plenty of other ways to inform your opinion of a company. For example, many people view a high return on equity as an indication of favorable business economics, while others like to “follow the money” and look for stocks that insiders are buying. So you might want to check this out free of charge collection of companies with high return on equity or this list of stocks insiders buy.

Assessment is complex, but we help simplify it.

Find out if Cushman & Wakefield is potentially overvalued or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and caveats, dividends, insider trading and financial health.

View your free analysis

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This article from Simply Wall St is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with focused long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in any of the stocks mentioned.

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