- Brown & Brown‘s adjusted earnings per share (EPS) for the second quarter exceeded expectations at $1.03 compared to the estimate of $0.99.
- The adjusted EPS also showed an improvement from the previous year’s second-quarter figure of $0.93.
- Organic revenue increased by 3.6%, which was below the expected growth rate of 5.63%.
- Total revenue for the quarter was $1.29 billion, marking a 9.1% increase from the previous year and slightly surpassing the estimate of $1.28 billion.
- The EBITDAC margin declined to 33.8% from the previous year’s margin of 38.3%.
- Compensation expenses rose by 9.4% to $640 million, exceeding the estimate of $631.9 million.
- The company’s stock has five analyst ratings of “buy,” eight ratings of “hold,” and one rating of “sell.”
A look at Brown & Brown Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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
Based on the Smartkarma Smart Scores, Brown & Brown, Inc. shows a promising long-term outlook. With a value score of 3, the company is considered to be fairly valued within the market. In terms of growth and resilience, Brown & Brown scores well with a 4 on both factors, indicating a positive outlook for future expansion and the ability to withstand market challenges. Furthermore, the company’s momentum score of 3 suggests a steady performance in the market. Although the dividend score is at 2, indicating a lower dividend yield, the overall outlook for Brown & Brown appears to be optimistic.
As a company providing a variety of insurance and reinsurance products, along with risk management and employee benefit administration services, Brown & Brown, Inc. operates nationwide, showcasing its strong presence in the industry. With solid scores in growth, resilience, and momentum, investors may find Brown & Brown to be a compelling choice for long-term investment, despite the relatively lower dividend score. The company’s ability to navigate market challenges and its potential for future growth position it favorably for investors seeking stable returns in the insurance sector.
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.
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