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Daytona Beach, Florida-based Brown & Brown, Inc. (BRO) markets and sells insurance products and services and provides risk management solutions to help protect what its customers value most. Valued at a market cap of $29.1 billion, the company operates through four segments: Retail; National Programs; Wholesale Brokerage; and Services. It is expected to announce its fiscal Q4 earnings results on Monday, Jan. 27.
Prior to this event, analysts expect the insurance company to report a profit of $0.76 per share, up 31% from $0.58 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's bottom-line estimates in the last four quarters. Its adjusted earnings of $0.91 per share in the previous quarter outpaced the forecasted figure by 4.6%.
For fiscal 2024, analysts expect BRO to report an EPS of $3.74, up 33.1% from $2.81 in fiscal 2023. Furthermore, in fiscal 2025, EPS is expected to grow 9.6% year-over-year to $4.10.
Shares of BRO have rallied 46.3% over the past 52 weeks, significantly outperforming both the S&P 500 Index's ($SPX) 26.3% rise and the Financial Select Sector SPDR Fund’s (XLF) 29.8% return over the same time frame.
Shares of BRO recovered 1.6% in the subsequent trading session after the company released its Q3 earnings results on Oct. 28. Its revenue of $1.2 billion, increased 11% from the year ago quarter, while its adjusted earnings grew 12.3% year-over-year to $0.91 per share. A 10.1% annual increase in commissions and fees and a 9.5% organic revenue growth aided the results. Furthermore, the management expressed confidence in maintaining momentum and leveraging their capabilities to spur additional growth, reflecting a positive outlook for the company’s future performance.
Wall Street analysts are moderately optimistic about Brown & Brown’s stock, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, seven recommend "Strong Buy," two suggest "Moderate Buy," six indicate “Hold,” and one recommends a “Moderate Sell” rating. This configuration is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy."
The average analyst price target for BRO is $114.93 indicating a 13.1% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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