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Free Research Report as Arthur J. Gallagher’s Top- and Bottom-line Outperformed Estimates

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LONDON, UK / ACCESSWIRE / November 29, 2017 / Active-Investors free earnings report on Arthur J. Gallagher & Co. (NYSE: AJG) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=AJG. The Company posted its financial results for the third quarter fiscal 2017 (Q3 FY17) on October 26, 2017. The Rolling Meadows, Illinois-based Company's revenues grew 6.76% and non-GAAP earnings per share grew 5.19%. Register today and get free access to our complimentary member's area where many more reports are available:


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Earnings Highlights and Summary

During Q3 FY17, Arthur J. Gallagher reported revenues of $1.58 billion, up 6,76% compared to revenue of $1.48 billion recorded at the end of Q3 FY16. The Company's third-quarter adjusted revenue increased to $1.58 billion from $1.49 billion in Q3 FY16. Furthermore, total revenues numbers for the reported quarter outperformed market expectations of $1.56 billion.

The insurance and risk-management Company reported net earnings of $137.8 million, or $0.71 per diluted share, in Q3 FY17 which came in above $130.4 million, or $0.69 per diluted share, in Q3 FY16. Furthermore, the Company's adjusted net earnings for Q3 FY17 rose to $154.7 million, or $0.81 per diluted share, from $145.1 million, or $0.77 per diluted share, in Q3 FY16. Market analysts had forecasted adjusted earnings of $0.78 per diluted share for Q3 FY17.

Operating Metrics

For the three months ended on September 30, 2017, the Company reported earnings from continuing operations before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables (EBITDAC) of $238.8 million compared to $216.4 million in the prior year's corresponding quarter. The Company's adjusted EBITDAC for the reported quarter stood at $254.8 million compared to $238.0 million in the prior year's same quarter. Furthermore, the Company reported earnings before income taxes of $96.7 million in Q3 FY17 versus $94.9 million in Q3 FY16.

Segment Performance

During Q3 FY17, the Brokerage segment's GAAP revenue grew 9% to $953.7 million y-o-y from $877.6 million in the year ago same period. The segment reported year-over-year adjusted organic revenue growth of 3.5% in Q3 FY17. Additionally, the segment's adjusted EBITDAC margins increased by five basis points in Q3 FY17.

The Risk Management segment generated GAAP revenues of $200.2 million, which was 13.0% more than last year's recorded revenues numbers of $176.7 million. The division's adjusted organic revenue was also up by 10.2% y-o-y in the reported quarter. Furthermore, adjusted EBITDAC margin increased by 100 basis points in Q3 FY17.

Balance Sheet

The Company's net cash provided by operating activities was $459.1 million in the first three-quarters of FY17 compared to $368.9 million in the prior year's same period. The Company had cash and cash equivalents balance of $564.9 million as on September 30, 2017, compared to $545.5 million, at the close of books on December 31, 2016.


In a separate press release on October 25, 2017, Arthur J. Gallagher's Board of Directors announced regular quarterly cash dividend of $0.39 per share on the Common Stock of the Company, payable on December 15, 2017, to Stockholders of Record as of December 01, 2017.

Stock Performance Snapshot

November 28, 2017 - At Tuesday's closing bell, Arthur J. Gallagher's stock advanced 1.40%, ending the trading session at $66.63.

Volume traded for the day: 1.19 million shares, which was above the 3-month average volume of 878.40 thousand shares.

Stock performance in the last month – up 6.54%; previous three-month period – up 14.80%; past twelve-month period – up 30.09%; and year-to-date – up 28.23%

After yesterday's close, Arthur J. Gallagher's market cap was at $12.27 billion.

Price to Earnings (P/E) ratio was at 26.58.

The stock has a dividend yield of 2.34%.

The stock is part of the Financial sector, categorized under the Insurance Brokers industry. This sector was up 1.4% at the end of the session.


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