## Brown & Brown (BRO) Earnings Preview: What to Expect on October 28th
Investors are gearing up for Brown & Brown’s (BRO) upcoming Q3 2024 earnings report, scheduled for Monday, October 28th. The market is buzzing with anticipation, hoping for news of a strong performance and optimistic guidance for the coming quarter. But before the announcement, let’s delve into the key factors investors should consider.
Analyst Expectations:
Analysts are predicting an earnings per share (EPS) of $0.87 for the quarter. Remember, guidance can be a powerful driver of stock prices, so keep an eye out for any positive news in this area.Past Performance:
Brown & Brown has a history of exceeding expectations. In the previous quarter, the company beat EPS estimates by $0.05, leading to a 5.25% surge in share price the following day. Here’s a look at their recent track record:| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.88 | $0.93 | 5.0% |
| Q1 2024 | $1.05 | $1.14 | 1.0% |
| Q4 2023 | $0.53 | $0.58 | 5.0% |
| Q3 2023 | $0.62 | $0.71 | 4.0% |
Current Stock Performance:
As of October 24th, shares of Brown & Brown were trading at $105.28. Over the past 52 weeks, the stock has seen impressive growth, rising 53.46%. These strong returns suggest that long-term shareholders are optimistic going into this earnings release.Analyst Sentiment:
It’s crucial to understand the market sentiment surrounding Brown & Brown. Analysts have provided 7 ratings for the company, resulting in a consensus rating of Neutral. The average one-year price target stands at $113.0, indicating a potential 7.33% upside.Comparing to Peers:
To get a better sense of Brown & Brown’s position within the industry, we can compare its performance to its peers, including Willis Towers Watson, Baldwin Insurance, and Abacus Life.*
Willis Towers Watson:
Analysts are bullish on Willis Towers Watson, with an average one-year price target of $326.5, suggesting a potential 210.13% upside.*
Baldwin Insurance:
Analyst ratings are Neutral, with an average one-year price target of $46.67, indicating a potential 55.67% downside.*
Abacus Life:
Analysts are also bullish on Abacus Life, with an average one-year price target of $14.5, suggesting a potential 86.23% upside.Key Performance Metrics Comparison:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Brown & Brown | Neutral | 11.39% | $569M | 4.30% |
| Willis Towers Watson | Buy | 4.91% | $868M | 1.50% |
| Baldwin Insurance | Neutral | 14.83% | $94.38M | -2.95% |
| Abacus Life | Buy | 155.53% | $26.33M | 0.36% |
Key Takeaway:
Brown & Brown ranks in the middle for revenue growth among its peers, but boasts the highest gross profit compared to its peers. However, its Return on Equity (ROE) is currently the lowest.About Brown & Brown:
Brown & Brown Inc. is a leading insurance agent and broker, offering a diverse range of insurance products and services, primarily in property, casualty, and employee benefits. They connect customers with insurance companies and earn their revenue through commissions and direct fees. The company operates predominantly in the United States, with a strong presence in Florida.
Brown & Brown’s Financial Strength:
Brown & Brown boasts a strong financial position, reflected in several key metrics:
*
Market Capitalization:
The company’s market capitalization surpasses industry averages, indicating significant size and market recognition.*
Revenue Growth:
Brown & Brown has experienced notable revenue growth over the past three months. As of June 30th, 2024, the company achieved a revenue growth rate of approximately 11.39%.*
Net Margin:
Brown & Brown’s net margin is impressive, exceeding industry averages, with a net margin of 22.01%, demonstrating strong profitability and effective cost management.*
Return on Equity (ROE):
Brown & Brown’s ROE is also noteworthy, surpassing industry averages with an impressive ROE of 4.3%. This signifies effective use of equity capital and strong financial performance.*
Return on Assets (ROA):
Brown & Brown’s exceptional ROA exceeds industry averages, showcasing efficient use of assets and strong financial health with a remarkable ROA of 1.65%.*
Debt Management:
Brown & Brown’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.71.Stay Updated:
To keep track of all earnings releases for Brown & Brown, be sure to visit their earnings calendar on our site for the latest updates.