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

Brown & Brown (NYSE:BRO) released its 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 business had revenue of $1.70 billion for the quarter, compared to analyst estimates of $1.76 billion. Brown & Brown had a return on equity of 13.17% and a net margin of 17.75%. Brown & Brown’s quarterly revenue was up 7.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.05 earnings per share.

Brown & Brown Price Performance

Shares of BRO opened at $71.44 on Tuesday. The firm has a market capitalization of $23.90 billion, a price-to-earnings ratio of 22.54, a PEG ratio of 2.27 and a beta of 0.60. The firm’s fifty day simple moving average is $67.25 and its 200-day simple moving average is $67.09. Brown & Brown has a twelve month low of $53.81 and a twelve month high of $89.05. The company has a current ratio of 2.11, a quick ratio of 2.11 and a debt-to-equity ratio of 0.58.

Brown & Brown Increases Dividend

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

Analyst Upgrades and Downgrades

Several brokerages have commented on BRO. Keefe, Bruyette & Woods upgraded shares of Brown & Brown from an “underperform” rating to an “outperform” rating and set a $77.00 price target for the company in a research note on Monday, October 12th. Mizuho cut their price objective on Brown & Brown from $83.00 to $78.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 7th. Jefferies Financial Group reiterated a “hold” rating on shares of Brown & Brown in a research note on Wednesday, July 29th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Brown & Brown in a report on Wednesday, July 29th. Finally, TD Cowen assumed coverage on Brown & Brown in a report on Monday, October 12th. They issued a “buy” rating and a $82.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $76.00.

Brown & Brown News Summary

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

• Positive Sentiment: Third-quarter revenue increased 7.4% year over year to $1.725 billion, while net income attributable to Brown & Brown rose 5.7% to $240 million. Adjusted diluted EPS increased 1.9% to $1.07. Brown & Brown third-quarter results
• Positive Sentiment: For the first nine months, revenue grew 23.4% to $5.3 billion and net income increased 20.8% to $954 million, supported partly by the integration of approximately 5,000 employees from the Accession acquisition. Brown & Brown nine-month results
• Neutral Sentiment: Management said the company continued winning customers despite a challenging insurance-rate environment. Investors will look for additional detail during the October 27 conference call regarding organic growth, acquisition integration and the outlook.
• Negative Sentiment: Adjusted EPS of $1.07 fell short of the $1.08 consensus estimate, while revenue of $1.70 billion missed the $1.76 billion analyst forecast. Brown & Brown misses third-quarter estimates
• Negative Sentiment: Core organic revenue grew only 1.2%—1.5% including contingents—raising concerns that reported growth remains heavily dependent on acquisitions. Adjusted EBITDAC margin declined to 34.6% from 36.6%, and diluted GAAP EPS decreased 1.5% to $0.67. Brown & Brown organic growth and margin results

Brown & Brown Company Profile

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.