Insurance brokerage firm Brown & Brown (NYSE: BRO) will be reporting earnings this Monday after market hours. Here’s what you need to know.
Brown & Brown missed analysts’ revenue expectations last quarter, reporting revenues of $1.61 billion, up 35.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ organic revenue estimates.
Is Brown & Brown a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Brown & Brown’s revenue to grow 34.8% year on year, improving from the 11.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Brown & Brown has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Brown & Brown’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 2.9%, and Robert Half reported a revenue decline of 3.8%, in line with consensus estimates. Marsh’s stock price was unchanged after the resultswhile Robert Half was down 5.8%.
Read our full analysis of Marsh’s results here and Robert Half’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 12.2% on average over the last month. Brown & Brown is up 4.8% during the same time and is heading into earnings with an average analyst price target of $79.47 (compared to the current share price of $66.46).
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