A Glimpse of Brown & Brown's Earnings Potential

Brown & Brown BRO is set to give its latest quarterly earnings report on Monday, 2024-10-28. Here's what investors need to know before the announcement.

Analysts estimate that Brown & Brown will report an earnings per share (EPS) of $0.87.

The market awaits Brown & Brown's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.05, leading to a 5.25% increase in the share price on the subsequent day.

Here's a look at Brown & Brown's past performance and the resulting price change:

Tracking Brown & Brown's Stock Performance

Shares of Brown & Brown were trading at $105.28 as of October 24. Over the last 52-week period, shares are up 53.46%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Brown & Brown

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Brown & Brown.

Analysts have provided Brown & Brown with 7 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $113.0, suggesting a potential 7.33% upside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Willis Towers Watson, Baldwin Insurance and Abacus Life, three key industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Willis Towers Watson is favoring an Buy trajectory, with an average 1-year price target of $326.5, suggesting a potential 210.13% upside.
• For Baldwin Insurance, analysts project an Neutral trajectory, with an average 1-year price target of $46.67, indicating a potential 55.67% downside.
• As per analysts' assessments, Abacus Life is favoring an Buy trajectory, with an average 1-year price target of $14.5, suggesting a potential 86.23% downside.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for Willis Towers Watson, Baldwin Insurance and Abacus Life, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Brown & Brown ranks in the middle for revenue growth among its peers. It has the highest gross profit compared to its peers. In terms of return on equity, Brown & Brown is at the bottom.

About Brown & Brown

Brown & Brown Inc is an insurance agent and broker that offers insurance products and services, primarily in the areas of property, casualty, and employee benefits, by connecting customers with insurance companies. It earns its revenue via commissions from insurance companies and direct fees from customers, and it generally has no underwriting risk exposure. More than half of its revenue is from its retail segment, which provides a broad range of insurance products and services to entities and individuals. Roughly a fourth of revenue is from its national programs segment, which provides, among other things, professional liability coverage for professionals. The company operates primarily in the United States, with its highest exposure in Florida.

Breaking Down Brown & Brown's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Brown & Brown's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 11.39%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Brown & Brown's net margin is impressive, surpassing industry averages. With a net margin of 22.01%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Brown & Brown's ROE stands out, surpassing industry averages. With an impressive ROE of 4.3%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Brown & Brown's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.65%, the company showcases efficient use of assets and strong financial health.

Debt Management: Brown & Brown's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.71.

To track all earnings releases for Brown & Brown visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.