The upcoming report from Arthur J. Gallagher (AJG) is expected to reveal quarterly earnings of $2.35 per share, indicating an increase of 10.3% compared to the year-ago period. Analysts forecast revenues of $3.58 billion, representing an increase of 33.6% year over year.
The current level reflects a downward revision of 0.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Arthur J. Gallagher metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenues- Total Company- Fees' will reach $1.03 billion. The estimate indicates a year-over-year change of +17.1%.
The consensus among analysts is that 'Revenues- Total Company- Commissions' will reach $2.24 billion. The estimate indicates a change of +49.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Risk Management Segment- Revenues before reimbursements' should arrive at $397.56 million. The estimate points to a change of +7.6% from the year-ago quarter.
The average prediction of analysts places 'Revenues- Total Company- Interest income, premium finance revenues and other income' at $94.72 million. The estimate points to a change of -35.1% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenues- Brokerage Segment- Supplemental revenues' will likely reach $100.08 million. The estimate indicates a change of +2.4% from the prior-year quarter.
It is projected by analysts that the 'Revenues- Brokerage Segment- Contingent revenues' will reach $82.00 million. The estimate indicates a year-over-year change of +56.2%.
Analysts' assessment points toward 'Revenues- Brokerage Segment- Interest income, premium finance revenues and other income' reaching $84.46 million. The estimate indicates a change of -30.9% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenues- Risk Management Segment- Fees' should come in at $390.08 million. The estimate indicates a change of +8.3% from the prior-year quarter.
The consensus estimate for 'Brokerage - Compensation expense ratio' stands at 55.9%. Compared to the current estimate, the company reported 56.2% in the same quarter of the previous year.
Analysts forecast 'Brokerage - Operating expense ratio' to reach 14.7%. The estimate is in contrast to the year-ago figure of 15.0%.
The collective assessment of analysts points to an estimated 'Risk Management Segment - Compensation expense ratio' of 58.8%. Compared to the present estimate, the company reported 60.8% in the same quarter last year.
Analysts expect 'Risk Management Segment - Operating expense ratio' to come in at 17.8%. The estimate is in contrast to the year-ago figure of 19.6%.
View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have experienced a change of -2.9% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), AJG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Arthur J. Gallagher & Co. (AJG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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