For the quarter ended March 2025, Arthur J. Gallagher (AJG) reported revenue of $3.68 billion, up 14.4% over the same period last year. EPS came in at $3.67, compared to $3.49 in the year-ago quarter.
The reported revenue represents a surprise of -1.75% over the Zacks Consensus Estimate of $3.75 billion. With the consensus EPS estimate being $3.57, the EPS surprise was +2.80%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Brokerage - Compensation expense ratio: 48.8% compared to the 47.8% average estimate based on two analysts.
- Risk Management Segment - Operating expense ratio: 19% versus 19.2% estimated by two analysts on average.
- Risk Management Segment - Compensation expense ratio: 61.9% compared to the 56.9% average estimate based on two analysts.
- Brokerage - Operating expense ratio: 10.5% versus the two-analyst average estimate of 10.7%.
- Revenues- Total Company- Commissions: $2.25 billion versus $2.27 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.8% change.
- Revenues- Risk Management Segment- Revenues before reimbursements: $373.40 million versus the three-analyst average estimate of $382.24 million. The reported number represents a year-over-year change of +5.8%.
- Revenues- Total Company- Fees: $984.80 million compared to the $1.06 billion average estimate based on three analysts. The reported number represents a change of +3.5% year over year.
- Revenues- Brokerage Segment- Commissions: $2.25 billion versus the two-analyst average estimate of $2.26 billion. The reported number represents a year-over-year change of +12.8%.
- Revenues- Brokerage Segment- Fees: $620.20 million compared to the $709.07 million average estimate based on two analysts. The reported number represents a change of +2.2% year over year.
- Revenues- Brokerage Segment- Supplemental revenues: $113.90 million versus $96.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.3% change.
- Revenues- Brokerage Segment- Contingent revenues: $92.90 million versus $91.80 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8% change.
- Revenues- Brokerage Segment- Interest income, premium finance revenues and other income: $238.40 million versus $231.70 million estimated by two analysts on average.
View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have returned -6.8% over the past month versus the Zacks S&P 500 composite's -0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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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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