Arthur J. Gallagher's Quarterly Earnings Preview: What You Need to Know

Valued at a market cap of $70 billion, Arthur J. Gallagher & Co. (AJG) is a global leader in insurance brokerage, risk management, and consulting services. The Rolling Meadows, Illinois-situated company is expected to announce its Q4 earnings after the market closes on Thursday, Jan. 23.

Ahead of the event, analysts expect AJG to report a profit of $2.06 per share, up 11.4% from $1.85 in the year-ago quarter. The company has surpassed or touched Wall Street’s EPS estimates in its last four quarterly reports. 

For fiscal 2024, analysts expect AJG to report EPS of $10.06, up 14.8% from $8.76 in fiscal 2023. Its FY2025 EPS is expected to grow 12% year over year to $11.27.

AJG stock has climbed 24.6% over the past year, slightly lagging behind the broader S&P 500 Index's ($SPX) 26.3% gains and the SPDR S&P Insurance ETF’s (KIE) 24.6% returns over the same time frame.

On Oct. 24, AJG shares dipped marginally after reporting its Q3 earnings results. While its adjusted EPS of $2.26 aligned with Wall Street expectations, the company’s total revenues of $2.8 billion missed the consensus estimate.

The consensus opinion on AJG stock is reasonably bullish, with an overall “Moderate Buy” rating. Of the 19 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” eight indicate a “Hold,” and one advises a “Moderate Sell.” 

AJG's average analyst price target is $306.06, which indicates a potential upswing of 9.2% from prevailing market prices.