Goosehead (GSHD) Reports Q4 Earnings: What Key Metrics Have to Say
Goosehead Insurance (GSHD) reported $63.01 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 9.8%. EPS of $0.28 for the same period compares to $0.11 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $68.18 million, representing a surprise of -7.57%. The company delivered an EPS surprise of -12.50%, with the consensus EPS estimate being $0.32.
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 Goosehead performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Core Revenue- Renewal Commissions: $17.34 million versus $19.41 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.
Core Revenue- Renewal Royalty Fees: $27.18 million compared to the $29.36 million average estimate based on three analysts. The reported number represents a change of +18.7% year over year.
Core Revenue- New Business Commissions: $5.51 million versus the three-analyst average estimate of $5.87 million. The reported number represents a year-over-year change of -5.2%.
Core Revenue- New Business Royalty Fees: $5.35 million compared to the $5.43 million average estimate based on three analysts. The reported number represents a change of +21.5% year over year.
Core Revenue- Agency Fees: $1.53 million compared to the $2.40 million average estimate based on three analysts. The reported number represents a change of -36.7% year over year.
Total Ancillary Revenue: $3.34 million versus the three-analyst average estimate of $3.71 million. The reported number represents a year-over-year change of +48.1%.
Total Core Revenue: $56.91 million versus the three-analyst average estimate of $62.46 million. The reported number represents a year-over-year change of +9.8%.
Cost Recovery Revenue- Interest Income: $0.31 million versus $0.27 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -21.2% change.
Total Cost Recovery Revenue: $2.77 million versus the three-analyst average estimate of $2.57 million. The reported number represents a year-over-year change of -16.2%.
Ancillary Revenue- Contingent Commissions: $3.05 million versus the three-analyst average estimate of $3.43 million. The reported number represents a year-over-year change of +49%.
Ancillary Revenue- Other Franchise Revenues: $0.30 million compared to the $0.28 million average estimate based on three analysts. The reported number represents a change of +39.8% year over year.
Cost Recovery Revenue- Initial Franchise Fees: $2.46 million versus $2.11 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -15.5% change.
View all Key Company Metrics for Goosehead here>>>
Shares of Goosehead have returned +13.5% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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