Brown & Brown, Inc. BRO third-quarter 2019 adjusted earnings of 39 cents per share matched the Zacks Consensus Estimate and grew 2.6% year over year.
The company’s performance was driven by increased investment income, commissions and fees and recent acquisitions.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Behind the Headlines
Total revenues of $619 million beat the Zacks Consensus Estimate by 1.7%. Moreover, the top line rose 16.6% year over year on higher commissions and fees plus net investment income.
Commissions and fees grew 16.5% year over year to $617.4 million.
Investment income surged 112.5% year over year to $1.7 million.
Total expenses increased 20.2% to $466.8 million, driven by a rise in employee compensation and benefits, amortization, depreciation as well as other operating expenses and interest expense.
EBITDAC was $195 million, up 9.5% year over year. EBITDAC margin contracted 200 basis points year over year to 31.5%.
Brown & Brown exited the third quarter of 2019 with cash and cash equivalents of $497.5 million, up 13.3% from 2018-end level.
Long-term debt of $1.5 billion as of Sep 30, 2019 was up 3.8% from 2018 end.
Net cash provided by operating activities in the first nine months of 2019 was $447.1 million, up 25.8% year over year.
The company paid out cash dividend of 8 cents per share in the third quarter, up 6.7% year over year.
Brown & Brown closed five acquisitions in the reported quarter.
Brown & Brown currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Insurance Releases
Of the insurance industry players that have reported third-quarter results so far, Global Life GL, Arthur J. Gallagher AJG and RLI Corp. RLI beat the respective Zacks Consensus Estimate for earnings.
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