Brown & Brown (NYSE:BRO) Announces Earnings Results, Misses Expectations By $0.01 EPS

Brown & Brown (NYSE:BRO) issued its quarterly earnings results on Monday. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.08 by ($0.01), FiscalAI reports. The company had revenue of $1.70 billion during the quarter, compared to the consensus estimate of $1.76 billion. Brown & Brown had a return on equity of 13.17% and a net margin of 17.75%. The firm’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.05 earnings per share.

Brown & Brown Stock Performance

BRO stock opened at $71.44 on Tuesday. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.11 and a quick ratio of 2.11. The business has a 50-day moving average price of $67.25 and a 200 day moving average price of $67.09. The company has a market capitalization of $23.90 billion, a P/E ratio of 22.54, a PEG ratio of 2.27 and a beta of 0.60. Brown & Brown has a 1-year low of $53.81 and a 1-year high of $89.05.

Brown & Brown Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 11th. Investors of record on Wednesday, November 4th will be issued a $0.18 dividend. The ex-dividend date is Wednesday, November 4th. This is an increase from Brown & Brown’s previous quarterly dividend of $0.1650. This represents a $0.72 annualized dividend and a dividend yield of 1.0%. Brown & Brown’s dividend payout ratio is presently 20.82%.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Brown & Brown in a research report on Wednesday, July 29th. Wells Fargo & Company cut their price target on shares of Brown & Brown from $69.00 to $68.00 and set an “equal weight” rating on the stock in a report on Monday, October 12th. Citigroup reiterated a “market outperform” rating on shares of Brown & Brown in a report on Monday, October 12th. Jefferies Financial Group reissued a “hold” rating on shares of Brown & Brown in a research report on Wednesday, July 29th. Finally, Weiss Ratings raised shares of Brown & Brown from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Brown & Brown presently has a consensus rating of “Hold” and a consensus target price of $76.00.

Trending Headlines about Brown & Brown

Here are the key news stories impacting Brown & Brown this week:

• Positive Sentiment: Brown & Brown’s total revenue rose 7.4% to $1.725 billion, and net income attributable to the company increased 5.7% to $240 million. Nine-month revenue grew 23.4% to $5.3 billion, supported in part by the addition of approximately 5,000 employees from the Accession acquisition. Brown & Brown third-quarter results
• Positive Sentiment: Adjusted diluted EPS increased 1.9% to $1.07, while adjusted nine-month EPS rose 5.7% to $3.52. Adjusted EBITDAC also increased 1.7% to $597 million, indicating continued underlying earnings growth despite integration expenses. Brown & Brown adjusted earnings and revenue
• Neutral Sentiment: Management attributed the quarter’s performance to customer wins and the expanding capabilities gained through the Accession transaction. Investors will likely focus on the company’s conference call for commentary on integration progress, acquisition strategy and future growth. Brown & Brown Q3 earnings snapshot
• Negative Sentiment: Quarterly adjusted EPS of $1.07 missed the $1.08 consensus estimate, while revenue of $1.725 billion was below the approximately $1.76 billion analyst expectation. The revenue shortfall is likely weighing on the shares more than the modest EPS miss. Brown & Brown misses Q3 estimates
• Negative Sentiment: Core organic revenue growth was only 1.2%—or 1.5% including contingents—suggesting that much of the company’s expansion continues to depend on acquisitions rather than accelerating underlying demand. Brown & Brown Q3 organic growth and margins
• Negative Sentiment: Profitability weakened: the pretax margin fell to 18.6% from 19.4%, adjusted EBITDAC margin declined to 34.6% from 36.6%, and diluted GAAP EPS decreased 1.5% to $0.67. Acquisition and integration costs, higher amortization and a challenging rate environment remain key investor concerns. Brown & Brown Q3 sales below estimates

About Brown & Brown

Brown & Brown, Inc is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. The company helps businesses, public entities, individuals and other organizations identify, manage and transfer risk by arranging insurance coverage and providing related advisory services.

Its operations include retail insurance brokerage, national programs, wholesale brokerage and services. Brown & Brown offers property and casualty insurance, employee benefits, personal insurance, surety and other specialized coverage.