Brown & Brown Earnings: Here’s Why Investors are Buying Shares Now

Brown & Brown Inc. (NYSE:BRO) 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 up 2.99%.

Brown & Brown Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.14% to $0.36 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 11.99% to $325.79 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brown & Brown Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.35. It beat the average revenue estimate of $318.3 million.

Quoting Management: J. Powell Brown, President and Chief Executive Officer of the Company, noted, “We are very pleased with our quarterly consolidated internal growth rate in core commissions and fees (see the calculation and explanation of this term later in the release) of 7.4%. Our largest Division, Retail, continues to show nice improvements with a quarterly internal growth rate in core commissions and fees of 2.3%, which reflects a gradual, but steady improvement in the middle-market economy. Our other Divisions, National Programs, Wholesale Brokerage, and Services, each had exceptional quarterly internal growth rates in core commissions and fees in excess of 10.0%.”

Key Stats (on next page)…

Revenue decreased 2.75% from $335.01 million in the previous quarter. EPS decreased 12.2% from $0.41 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.40 and has not changed. For the current year, the average estimate has moved up from a profit of $1.47 to a profit of $1.51 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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