Brown & Brown (BRO) Reports Earnings Tomorrow: What To Expect

Insurance brokerage firm Brown & Brown (NYSE:BRO) will be reporting results this Monday afternoon. Here’s what to look for.

Brown & Brown beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $1.61 billion, up 35.4% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ 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, analysts are expecting Brown & Brown’s revenue to grow 39.1% year on year to $1.64 billion, improving from the 15.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.90 per share.

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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.

Looking at Brown & Brown’s peers in the professional services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Booz Allen Hamilton’s revenues decreased 10.2% year on year, missing analysts’ expectations by 3.8%, and Concentrix reported revenues up 4.3%, topping estimates by 0.7%. Concentrix traded up 2.3% following the results.

Read our full analysis of Booz Allen Hamilton’s results here and Concentrix’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 down 2.2% during the same time and is heading into earnings with an average analyst price target of $90 (compared to the current share price of $78.28).

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