Insurance brokerage firm Brown & Brown (NYSE: BRO) will be reporting results this Monday after market close. Here’s what investors should know.
Brown & Brown missed analysts’ revenue expectations last quarter, reporting revenues of $1.68 billion, up 30.4% year on year. It was a softer quarter for the company, with EPS in line with analysts’ 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 9.7% year on year, slowing from the 35.4% 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 will 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 Q3 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 8.1%, beating analysts’ expectations by 3.2%, and Booz Allen Hamilton reported a revenue decline of 3.9%, falling short of estimates by 1.1%. Marsh traded up 5.6% following the results.
Read our full analysis of Marsh’s results here and Booz Allen Hamilton’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 2.1% on average over the last month. Brown & Brown is up 19.8% during the same time and is heading into earnings with an average analyst price target of $74.67 (compared to the current share price of $72.85).
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