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Goosehead (GSHD) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

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Goosehead Insurance (GSHD - Free Report) reported $78.09 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 12.7%. EPS of $0.42 for the same period compares to $0.41 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $74.11 million, representing a surprise of +5.36%. The company delivered an EPS surprise of +5.00%, with the consensus EPS estimate being $0.40.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Goosehead performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Core Revenue: $73.41 million compared to the $69.48 million average estimate based on four analysts. The reported number represents a change of +20.3% year over year.
  • Cost Recovery Revenue- Initial Franchise Fees: $1.63 million versus the four-analyst average estimate of $2.94 million. The reported number represents a year-over-year change of -50.4%.
  • Total Ancillary Revenue: $2.81 million compared to the $1.49 million average estimate based on four analysts. The reported number represents a change of -38.3% year over year.
  • Core Revenue- New Business Royalty Fees: $7.17 million versus the three-analyst average estimate of $6.56 million. The reported number represents a year-over-year change of +14.4%.
  • Core Revenue- Agency Fees: $2.14 million versus $2.53 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.1% change.
  • Ancillary Revenue- Contingent Commissions: $2.21 million versus $1.14 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -44.4% change.
  • Ancillary Revenue- Other Franchise Revenues: $0.60 million versus $0.35 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.9% change.
  • Core Revenue- Renewal Commissions: $20.59 million versus $20.03 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change.
  • Total Cost Recovery Revenue: $1.88 million compared to the $3.29 million average estimate based on three analysts. The reported number represents a change of -49.4% year over year.
  • Core Revenue- New Business Commissions: $6.68 million versus $6.69 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.8% change.
  • Core Revenue- Renewal Royalty Fees: $36.83 million versus the three-analyst average estimate of $33.37 million. The reported number represents a year-over-year change of +33.7%.
  • Cost Recovery Revenue- Interest Income: $0.24 million compared to the $0.27 million average estimate based on three analysts. The reported number represents a change of -41.5% year over year.
View all Key Company Metrics for Goosehead here>>>

Shares of Goosehead have returned +21.9% over the past month versus the Zacks S&P 500 composite's +1.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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