Wall Street analysts forecast that Arthur J. Gallagher (AJG) will report quarterly earnings of $3.57 per share in its upcoming release, pointing to a year-over-year increase of 2.3%. It is anticipated that revenues will amount to $3.75 billion, exhibiting an increase of 16.5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 8.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
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 it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Arthur J. Gallagher metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Revenues- Total Company- Commissions' stands at $2.27 billion. The estimate suggests a change of +14.1% year over year.
Analysts forecast 'Revenues- Risk Management Segment- Revenues before reimbursements' to reach $382.24 million. The estimate indicates a change of +8.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Total Company- Fees' should arrive at $1.06 billion. The estimate points to a change of +11.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Brokerage Segment- Commissions' of $2.26 billion. The estimate points to a change of +13.4% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenues- Brokerage Segment- Fees' should come in at $709.07 million. The estimate suggests a change of +16.9% year over year.
The combined assessment of analysts suggests that 'Revenues- Brokerage Segment- Supplemental revenues' will likely reach $96.15 million. The estimate suggests a change of +2.4% year over year.
The consensus among analysts is that 'Revenues- Brokerage Segment- Contingent revenues' will reach $91.80 million. The estimate indicates a change of +6.7% from the prior-year quarter.
It is projected by analysts that the 'Revenues- Risk Management Segment- Fees' will reach $373.76 million. The estimate points to a change of +8.5% from the year-ago quarter.
Analysts' assessment points toward 'Brokerage - Compensation expense ratio' reaching 47.8%. Compared to the current estimate, the company reported 51.6% in the same quarter of the previous year.
The average prediction of analysts places 'Risk Management Segment - Operating expense ratio' at 19.2%. Compared to the present estimate, the company reported 19.4% in the same quarter last year.
Analysts expect 'Risk Management Segment - Compensation expense ratio' to come in at 56.9%. Compared to the current estimate, the company reported 60.6% in the same quarter of the previous year.
Analysts predict that the 'Brokerage - Operating expense ratio' will reach 10.7%. The estimate compares to the year-ago value of 11.9%.
View all Key Company Metrics for Arthur J. Gallagher here>>>
Over the past month, Arthur J. Gallagher shares have recorded returns of -5.4% versus the Zacks S&P 500 composite's -4.3% change. Based on its Zacks Rank #3 (Hold), AJG will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Arthur J. Gallagher & Co. (AJG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
