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Goosehead (GSHD) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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Goosehead Insurance (GSHD - Free Report) reported $93.92 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 49.1%. EPS of $0.79 for the same period compares to $0.28 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $77.82 million, representing a surprise of +20.70%. The company delivered an EPS surprise of +92.68%, with the consensus EPS estimate being $0.41.

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: $67.97 million versus the four-analyst average estimate of $71.76 million. The reported number represents a year-over-year change of +19.5%.
  • Total Cost Recovery Revenue: $1.54 million compared to the $2.19 million average estimate based on four analysts. The reported number represents a change of -44.4% year over year.
  • Total Ancillary Revenue: $24.41 million versus the four-analyst average estimate of $6.61 million. The reported number represents a year-over-year change of +630.8%.
  • Core Revenue- New Business Royalty Fees: $6.73 million compared to the $6.52 million average estimate based on three analysts. The reported number represents a change of +25.7% year over year.
  • Core Revenue- Agency Fees: $2.09 million versus $2.22 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +36.5% change.
  • Ancillary Revenue- Contingent Commissions: $24.02 million versus the three-analyst average estimate of $5.51 million. The reported number represents a year-over-year change of +688.8%.
  • Cost Recovery Revenue- Initial Franchise Fees: $1.33 million versus $2.06 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -45.8% change.
  • Core Revenue- Renewal Commissions: $18.17 million versus the three-analyst average estimate of $19.65 million. The reported number represents a year-over-year change of +4.8%.
  • Ancillary Revenue- Other Franchise Revenues: $0.39 million compared to the $0.30 million average estimate based on three analysts. The reported number represents a change of +32.5% year over year.
  • Core Revenue- New Business Commissions: $6 million versus the three-analyst average estimate of $6.85 million. The reported number represents a year-over-year change of +8.8%.
  • Core Revenue- Renewal Royalty Fees: $34.99 million versus the three-analyst average estimate of $33.79 million. The reported number represents a year-over-year change of +28.7%.
  • Cost Recovery Revenue- Interest Income: $0.21 million versus $0.20 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -32.8% change.
View all Key Company Metrics for Goosehead here>>>

Shares of Goosehead have returned +5.8% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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