- Arthur J. Gallagher’s adjusted earnings per share (EPS) for Q4 2024 came in at $2.13, beating the estimated $2.01.
- The company’s revenue reached $2.72 billion, slightly above the forecast of $2.7 billion.
- Brokerage revenue was reported at $2.30 billion, marginally surpassing the estimate of $2.29 billion.
- Risk management revenue was $405.4 million, a bit under the anticipated $409.1 million.
- Risk Management EBITDAC margin, when adjusted, matched the expected 20.6%.
- Brokerage organic revenue showed a growth of 7.1%, slightly below the projected 7.76%.
- There was an organic change in risk management fees of 6%, which trailed behind the 7.13% estimate.
- As of January 2025, primary renewal premium increases are slightly higher than Q4, notably exceeding 5%, due to increments in casualty categories such as umbrella and commercial auto.
- Investment analysts have issued 11 “buy” recommendations, 6 “hold,” and 2 “sell” for the company.
Arthur J Gallagher & Co on Smartkarma
Independent analysts on Smartkarma, such as Baptista Research, have been closely covering Arthur J. Gallagher & Co. The company recently reported strong financial results for the third quarter of 2024, impressing analysts with a robust performance in its core segments of Brokerage and Risk Management. Revenue growth stood at an impressive 13%, with organic growth reaching 6%. Despite these positive numbers, analysts highlighted four significant challenges that are currently impacting their optimism for the company’s future.
Furthermore, Baptista Research also covered Arthur J. Gallagher & Co.’s acquisition of Cornerstone Insurance, emphasizing that the move is set to strengthen the company’s regional expertise. In the second quarter of 2024, the company demonstrated strong financial performance, with substantial growth in revenue and earnings. The combined revenue for the Brokerage and Risk Management segments increased by 14%, with organic growth rising by 7.7%. Analysts noted a margin expansion of 102 basis points to 31.4%, reflecting the company’s ability to navigate market challenges effectively.
A look at Arthur J Gallagher & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Arthur J Gallagher & Co, a company specializing in insurance brokerage and risk management services, has received a mixed outlook based on Smartkarma Smart Scores. While scoring high on momentum with a 5, indicative of a strong growth trajectory, the company scores moderate on value and dividend factors with a score of 2 each. In terms of growth and resilience, Gallagher earns a score of 3, hinting at a steady performance in these areas. This suggests a long-term outlook that balances growth potential with stability.
Arthur J Gallagher & Co is recognized for providing insurance brokerage, risk management, and employee benefit services domestically and internationally. The company’s core business involves negotiating and securing insurance coverage for its clients while also delivering specialized risk management services. With varying Smartkarma Smart Scores across different factors, the company appears positioned to leverage its momentum for future growth while maintaining a resilient operational framework.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
