Brown & Brown, Inc. Prepares to Release Q1 Earnings Results
Daytona Beach, Florida-based Brown & Brown, Inc. (BRO) specializes in marketing and selling insurance products and services both in the U.S. and internationally. With a market capitalization of $34 billion, the company operates through four segments: Retail, Programs, Wholesale Brokerage, and Services.
Upcoming Earnings Announcement
The insurance broker is set to announce its first-quarter results after the market closes on Monday, April 28. Analysts predict that BRO will report an adjusted EPS of $1.30, representing a significant 14% increase from the $1.14 reported in the same quarter last year. Additionally, the company boasts a strong earnings surprise history, having exceeded Wall Street’s bottom-line estimates for the past four quarters.
Full-Year and Future Projections
For fiscal year 2025, BRO is expected to achieve an adjusted EPS of $4.19, reflecting a 9.1% increase compared to the $3.84 reported in fiscal year 2024. Forecasts for fiscal year 2026 indicate further growth, with adjusted earnings anticipated to reach $4.60 per share, a year-over-year increase of 9.8%.
Stock Performance Insights
In the past year, BRO’s stock prices have surged 47.6%, significantly outperforming the S&P 500 Index’s 5.5% gains and the Financial Select Sector SPDR Fund’s (XLF) 17.7% increase during the same period.
Market Reaction to Previous Earnings
Despite exceeding expectations, Brown & Brown’s stock declined by 2.6% after the release of its Q4 results on January 27. The company experienced robust organic growth, with total revenues rising 15.4% year-over-year to $1.2 billion, surpassing Street expectations by 6.4%. Notably, Brown & Brown’s adjusted EBITDAC increased by 22.6% year-over-year to $390 million. Additionally, adjusted EPS rose 24.6% year-over-year to $0.86, exceeding consensus estimates by 14.7%.
Nevertheless, the company’s aggressive acquisition strategy has led to increased debt and goodwill on its balance sheet, which may have dampened investor confidence.
Analyst Ratings and Market Outlook
The consensus view on BRO’s stock is cautiously optimistic, currently holding a “Moderate Buy” rating. Among the 16 analysts covering the stock, there are five “Strong Buys,” two “Moderate Buys,” eight “Holds,” and one “Moderate Sell.” At the time of writing, BRO’s stock is trading slightly above its mean price target of $118.14.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are provided solely for informational purposes. For more details, 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.
