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Here's What to Expect From Arthur J. Gallagher's Q3 Earnings
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Arthur J. Gallagher & Co. (AJG - Free Report) is slated to report third-quarter 2024 earnings on Oct. 24, after market close. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 1.93%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors to Consider
Solid performance in both segments, aided by new business, solid retention and higher renewal premiums across its business lines, is likely to have benefited Arthur J. Gallagher’s third-quarter performance.
Revenues associated with acquisitions, the organic change in base commissions and fee revenues are likely to have favored commission and fee revenues in the third quarter of 2024. The Zacks Consensus Estimate for fees is pegged at $957.7 million, indicating an increase of 13.2% from the prior-year period’s reported number. The consensus mark for commissions is pegged at $1.5 billion, implying 14% growth from the prior-year period’s reported number.
The property and casualty brokerage operations are likely to have been aided by continued strong customer retention, higher new business generation and increasing renewal premiums (premium rates and exposures) in the to-be-reported quarter.
The risk management segment is likely to have been aided by new business wins, outstanding retention, increases in customer business activity and higher new rising claims.
Higher commissions and fees, increased supplemental revenues, improved contingent revenues and investment income, as well as strategic mergers and acquisitions, are likely to have driven the top line in the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter revenues is pinned at $2.75 billion, indicating an increase of 12% from the year-ago reported figure.
Total expenses are likely to have increased mainly because of higher compensation, reimbursements, interest, amortization and changes in estimated acquisition earnout payables.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.26, indicating an increase of 13% from the year-ago reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -0.25%. This is because the Most Accurate Estimate of $2.25 is pegged lower than the Zacks Consensus Estimate of $2.26. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AJG currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
Willis Towers Watson Public Limited Company (WTW - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year increase of 19.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
WTW’s earnings beat estimates in each of the last four reported quarters.
Brown & Brown, Inc. (BRO - Free Report) has an Earnings ESP of +2.89% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at 87 cents, indicating a year-over-year increase of 22.5%.
BRO’s earnings beat estimates in each of the last four reported quarters.
Aon plc (AON - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.45, indicating a year-over-year increase of 5.6%.
AON’s earnings beat estimates in one of the last four reported quarters and missed in three.
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Here's What to Expect From Arthur J. Gallagher's Q3 Earnings
Arthur J. Gallagher & Co. (AJG - Free Report) is slated to report third-quarter 2024 earnings on Oct. 24, after market close. The insurer delivered an earnings surprise in each of the last four reported quarters, the average beat being 1.93%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors to Consider
Solid performance in both segments, aided by new business, solid retention and higher renewal premiums across its business lines, is likely to have benefited Arthur J. Gallagher’s third-quarter performance.
Revenues associated with acquisitions, the organic change in base commissions and fee revenues are likely to have favored commission and fee revenues in the third quarter of 2024. The Zacks Consensus Estimate for fees is pegged at $957.7 million, indicating an increase of 13.2% from the prior-year period’s reported number. The consensus mark for commissions is pegged at $1.5 billion, implying 14% growth from the prior-year period’s reported number.
The property and casualty brokerage operations are likely to have been aided by continued strong customer retention, higher new business generation and increasing renewal premiums (premium rates and exposures) in the to-be-reported quarter.
The risk management segment is likely to have been aided by new business wins, outstanding retention, increases in customer business activity and higher new rising claims.
Higher commissions and fees, increased supplemental revenues, improved contingent revenues and investment income, as well as strategic mergers and acquisitions, are likely to have driven the top line in the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter revenues is pinned at $2.75 billion, indicating an increase of 12% from the year-ago reported figure.
Total expenses are likely to have increased mainly because of higher compensation, reimbursements, interest, amortization and changes in estimated acquisition earnout payables.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.26, indicating an increase of 13% from the year-ago reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -0.25%. This is because the Most Accurate Estimate of $2.25 is pegged lower than the Zacks Consensus Estimate of $2.26. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Arthur J. Gallagher & Co. Price and EPS Surprise
Arthur J. Gallagher & Co. price-eps-surprise | Arthur J. Gallagher & Co. Quote
Zacks Rank: AJG currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
Willis Towers Watson Public Limited Company (WTW - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year increase of 19.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
WTW’s earnings beat estimates in each of the last four reported quarters.
Brown & Brown, Inc. (BRO - Free Report) has an Earnings ESP of +2.89% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at 87 cents, indicating a year-over-year increase of 22.5%.
BRO’s earnings beat estimates in each of the last four reported quarters.
Aon plc (AON - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $2.45, indicating a year-over-year increase of 5.6%.
AON’s earnings beat estimates in one of the last four reported quarters and missed in three.