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Brown & Brown (BRO) Beats Q1 Earnings & Revenue Estimates
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Brown & Brown, Inc. (BRO - Free Report) reported first-quarter 2017 earnings of 43 cents per share that beat the Zacks Consensus Estimate by 2.4%. However, earnings declined 4.4% year over year due to higher expenses.
Behind the Headlines
Total revenue amounted to $465.1 million, which beat the Zacks Consensus Estimate of $443 million by approximately 5%. Also, the top line improved 9.6% year over year on higher commissions and fees. Organic revenue growth was 3.5% in the reported quarter.
Commissions and fees rose 5.3% year over year to $444.6 million.
Investment income plunged 50% year over year to $0.2 million.
Total expenses increased 10.1% to $354.1 million due to a rise in employee compensation and benefits, other operating expenses, and higher depreciation.
Net income before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables (EBITDAC) margin increased 10 basis points to 32.8%.
Financial Update
Brown & Brown exited the first quarter with cash and cash equivalents of $546.7 million, up 6% from year-end 2016.
Long-term debt was $1.005 billion as of Mar 31, 2017, down 1.3% from $1.0184 billion at the end of 2016.
Dividend Update
This Zacks Rank #3 (Hold) company’s board of directors declared a quarterly cash dividend of 13.5 cents per share on Apr 17, 2017. The dividend will be paid on May 17, to shareholders on record as of May 8, 2017.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
CNA Financial Corporation offers commercial property and casualty insurance products, primarily in the United States. The company is expected to release first-quarter results on May 1.
Cincinnati Financial deals in the property-casualty insurance business in the United States. The company is slated to release first-quarter results on Apr 26.
Everest Re Group offers reinsurance and insurance products. The company is set to release first-quarter results on Apr 24.
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Brown & Brown (BRO) Beats Q1 Earnings & Revenue Estimates
Brown & Brown, Inc. (BRO - Free Report) reported first-quarter 2017 earnings of 43 cents per share that beat the Zacks Consensus Estimate by 2.4%. However, earnings declined 4.4% year over year due to higher expenses.
Behind the Headlines
Total revenue amounted to $465.1 million, which beat the Zacks Consensus Estimate of $443 million by approximately 5%. Also, the top line improved 9.6% year over year on higher commissions and fees. Organic revenue growth was 3.5% in the reported quarter.
Commissions and fees rose 5.3% year over year to $444.6 million.
Investment income plunged 50% year over year to $0.2 million.
Total expenses increased 10.1% to $354.1 million due to a rise in employee compensation and benefits, other operating expenses, and higher depreciation.
Net income before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables (EBITDAC) margin increased 10 basis points to 32.8%.
Financial Update
Brown & Brown exited the first quarter with cash and cash equivalents of $546.7 million, up 6% from year-end 2016.
Long-term debt was $1.005 billion as of Mar 31, 2017, down 1.3% from $1.0184 billion at the end of 2016.
Dividend Update
This Zacks Rank #3 (Hold) company’s board of directors declared a quarterly cash dividend of 13.5 cents per share on Apr 17, 2017. The dividend will be paid on May 17, to shareholders on record as of May 8, 2017.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. Price, Consensus and EPS Surprise | Brown & Brown, Inc. Quote
Stocks to Consider
Some better-ranked stocks from the insurance industry are CNA Financial Corporation (CNA - Free Report) , Cincinnati Financial Corporation (CINF - Free Report) and Everest Re Group, Ltd. . Each of these stocks holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial Corporation offers commercial property and casualty insurance products, primarily in the United States. The company is expected to release first-quarter results on May 1.
Cincinnati Financial deals in the property-casualty insurance business in the United States. The company is slated to release first-quarter results on Apr 26.
Everest Re Group offers reinsurance and insurance products. The company is set to release first-quarter results on Apr 24.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>