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Daytona Beach, Florida-based Brown & Brown, Inc. (BRO) markets and sells insurance products and services and provides risk management solutions to help protect what its customers value most. Valued at a market cap of $29.1 billion, the company operates through four segments: Retail; National Programs; Wholesale Brokerage; and Services. It is expected to announce its fiscal Q4 earnings results on Monday, Jan. 27.
Prior to this event, analysts expect the insurance company to report a profit of $0.76 per share, up 31% from $0.58 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's bottom-line estimates in the last four quarters. Its adjusted earnings of $0.91 per share in the previous quarter outpaced the forecasted figure by 4.6%.
For fiscal 2024, analysts expect BRO to report an EPS of $3.74, up 33.1% from $2.81 in fiscal 2023. Furthermore, in fiscal 2025, EPS is expected to grow 9.6% year-over-year to $4.10.
Shares of BRO have rallied 46.3% over the past 52 weeks, significantly outperforming both the S&P 500 Index's ($SPX) 26.3% rise and the Financial Select Sector SPDR Fund’s (XLF) 29.8% return over the same time frame.
Shares of BRO recovered 1.6% in the subsequent trading session after the company released its Q3 earnings results on Oct. 28. Its revenue of $1.2 billion, increased 11% from the year ago quarter, while its adjusted earnings grew 12.3% year-over-year to $0.91 per share. A 10.1% annual increase in commissions and fees and a 9.5% organic revenue growth aided the results. Furthermore, the management expressed confidence in maintaining momentum and leveraging their capabilities to spur additional growth, reflecting a positive outlook for the company’s future performance.
Wall Street analysts are moderately optimistic about Brown & Brown’s stock, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, seven recommend "Strong Buy," two suggest "Moderate Buy," six indicate “Hold,” and one recommends a “Moderate Sell” rating. This configuration is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy."
The average analyst price target for BRO is $114.93 indicating a 13.1% potential upside from the current levels.
