Compared to Estimates, Brown & Brown (BRO) Q2 Earnings: A Look at Key Metrics
For the quarter ended June 2023, Brown & Brown (BRO) reported revenue of $1.05 billion, up 24.7% over the same period last year. EPS came in at $0.68, compared to $0.51 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $982.03 million, representing a surprise of +6.65%. The company delivered an EPS surprise of +15.25%, with the consensus EPS estimate being $0.59.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Brown & Brown performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Revenues- Commissions and fees: $1.04 billion versus $972.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.5% change.
Total Revenues- Investment income: $10.30 million versus the three-analyst average estimate of $6.14 million. The reported number represents a year-over-year change of +2475%.
Total Revenues- Other income net: $1.10 million compared to the $0.87 million average estimate based on three analysts. The reported number represents a change of +83.3% year over year.
Total Revenues- Profit-sharing contingent commissions: $33.60 million versus $21.11 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +52% change.
Total Revenues- Core commissions and fees: $1 billion compared to the $941.20 million average estimate based on two analysts. The reported number represents a change of +22.7% year over year.
Total Revenues- Services: $43.20 million versus the two-analyst average estimate of $44.51 million. The reported number represents a year-over-year change of -1.8%.
Total Revenues- Wholesale Brokerage: $139.10 million versus the two-analyst average estimate of $120.24 million. The reported number represents a year-over-year change of +23.8%.
Total Revenues- Retail: $574.50 million compared to the $546.75 million average estimate based on two analysts. The reported number represents a change of +25.6% year over year.
Total Revenues- National Programs: $283.30 million versus the two-analyst average estimate of $248.87 million. The reported number represents a year-over-year change of +25.5%.
View all Key Company Metrics for Brown & Brown here>>>
Shares of Brown & Brown have returned +4.2% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
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