Brown & Brown, Inc.: Approaching Earnings with Promising Trends
Daytona Beach, Florida’s Brown & Brown, Inc. (BRO) specializes in selling insurance products and services while providing risk management solutions to safeguard customers’ most valued assets. The company is currently valued at $29.1 billion and operates within four segments: Retail, National Programs, Wholesale Brokerage, and Services. Investors await the fiscal Q4 earnings release set for Monday, January 27.
Positive Earnings Forecasts Ahead of Q4 Announcement
Analysts predict that Brown & Brown will report a profit of $0.76 per share, marking a 31% increase compared to $0.58 per share in the same quarter last year. The company has a strong history, having exceeded Wall Street’s earnings expectations in the last four quarters. In the previous quarter, it reported adjusted earnings of $0.91 per share, outperforming estimates by 4.6%.
Growth Projections for 2024 and Beyond
For fiscal 2024, analysts forecast an EPS of $3.74, reflecting a 33.1% rise from $2.81 in fiscal 2023. Additionally, EPS is anticipated to grow by 9.6% to $4.10 in fiscal 2025.
Stock Performance Outshines Market Peers
Over the past year, BRO shares have surged by 46.3%, significantly outpacing the S&P 500 Index, which rose 26.3%, and the Financial Select Sector SPDR Fund’s (XLF) 29.8% return during the same period.
Solid Q3 Results Boost Investor Confidence
After announcing Q3 earnings on October 28, BRO shares increased by 1.6% in the following trading session. The company reported revenues of $1.2 billion, an 11% rise from the previous year, while adjusted earnings climbed 12.3% to $0.91 per share. Key factors contributing to this growth included a 10.1% annual increase in commissions and fees, alongside a 9.5% growth in organic revenue. Management projected continued momentum, suggesting confidence in future growth potential.
Analysts Maintain a Positive Outlook
Currently, Wall Street analysts hold a moderately optimistic view of Brown & Brown’s stock, rating it as a “Moderate Buy.” Of the 16 analysts covering the stock, seven recommend “Strong Buy,” two suggest “Moderate Buy,” six indicate “Hold,” and one advises a “Moderate Sell.” This assessment is slightly more favorable than three months prior, when only six analysts rated it as a “Strong Buy.”
The average analyst price target for BRO is $114.93, suggesting a 13.1% upside potential from the current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
