Arthur J Gallagher & Co. Earnings: Here’s Why the Stock is Down Now

Arthur J Gallagher & Co. (NYSE:AJG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.04%.

Arthur J Gallagher & Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25.86% to $0.73 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Rose 19.94% to $779.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Arthur J Gallagher & Co. reported adjusted EPS income of $0.73 per share. By that measure, the company beat the mean analyst estimate of $0.7. It beat the average revenue estimate of $716.72 million.

Quoting Management: “We had another strong quarter of organic growth and margin expansion across our global operations,” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “In the second quarter, our combined Brokerage and Risk Management segments posted 15% growth in adjusted total revenues, 7.0% organic growth in commission and fee revenues, 19% growth in adjusted EBITDAC and adjusted EBITDAC margin improved by 92 basis points.”

Key Stats (on next page)…

Revenue increased 15.64% from $674.1 million in the previous quarter. EPS increased 114.71% from $0.34 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.67 to a profit $0.63. For the current year, the average estimate is a profit of $2.22, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]