Arthur J. Gallagher & Co. Set to Report Q4 Earnings Amid Promising Outlook
Strong Expectations for Earnings Growth This Quarter
Arthur J. Gallagher & Co. (AJG), with a market cap of $70 billion, stands at the forefront of insurance brokerage and risk management. The company, headquartered in Rolling Meadows, Illinois, is scheduled to announce its Q4 earnings after market hours on Thursday, Jan. 23.
Analysts Anticipate Solid Performance
Analysts predict AJG will report a profit of $2.06 per share for the quarter, marking an 11.4% rise from $1.85 in the same period last year. Historically, AJG has performed well, having met or exceeded Wall Street’s earnings per share (EPS) estimates in its last four quarterly reports.
Positive Projections for Future Earnings
Looking forward to fiscal 2024, analysts anticipate AJG will achieve an EPS of $10.06, which represents a 14.8% increase from $8.76 in fiscal 2023. For FY2025, the expected EPS growth reaches 12%, pushing the target to $11.27.
Stock Performance and Comparisons
Over the past year, AJG stock has grown by 24.6%, slightly trailing behind the broader S&P 500 Index’s 26.3% gain and the SPDR S&P Insurance ETF’s (KIE) returns of 24.6% for the same period.
Insights from Recent Earnings Report
On Oct. 24, AJG shares experienced a slight dip following the release of its Q3 earnings. The company reported an adjusted EPS of $2.26, which met Wall Street’s expectations, but total revenues of $2.8 billion fell short of consensus estimates.
Analyst Ratings and Price Targets
The consensus rating for AJG stock leans towards optimism, reflected in a “Moderate Buy” rating. Out of 19 analysts monitoring the stock, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” eight indicate a “Hold,” while one advises a “Moderate Sell.”
Currently, AJG’s average analyst price target stands at $306.06, offering a potential upside of 9.2% from current market prices.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
