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Brown & Brown (BRO) Q2 Earnings Beat, Revenues Improve Y/Y
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Brown & Brown, Inc. (BRO - Free Report) reported second-quarter 2017 earnings of 49 cents per share that beat the Zacks Consensus Estimate by 4.3%. However, earnings remained flat year over year.
The quarter witnessed improved revenues, partially offset by a rise in expenses. Nonetheless, the company saw an increase in its commissions and fees.
Including change in estimated acquisition earn-out payables of 3 cents per share, net income came in at 46 cents per share, down 2.1% from the year-ago quarter.
Behind the Headlines
Total revenue amounted to $466.3 million, beating the Zacks Consensus Estimate of $465 million by approximately 0.3%. Also, the top line improved 4.4% year over year riding on higher commissions and fees. Organic revenue growth was 1.6% in the reported quarter.
Commissions and fees rose 4.3% year over year to $464.7 million.
Investment income fell 20% year over year to $0.4 million.
Total expenses increased 6.2% to $358.3 million, owing to a rise in employee compensation and benefits, other operating expenses, depreciation, interest as well as change in estimated acquisition earn-out payables.
Net income before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables (EBITDAC) margin decreased 120 basis points to 32.3%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown exited the second quarter with cash and cash equivalents of $600.3 million, up 16.4% from the 2016-end level.
Long-term debt of $965.4 million as of Jun 30, 2017 was down 5.2% from $1.0184 billion at the end of 2016.
Dividend Update
In the second quarter, this Zacks Rank #4 (Sell) company’s board of directors announced a quarterly dividend of 14 cents per share.
On Jul 13, 2017, the company’s board approved a quarterly cash dividend of 13.5 cents per share. The dividend will be paid on Aug 16 to shareholders on record as of Aug 9, 2017.
Everest Re Group offers reinsurance and insurance products. The company is set to release first-quarter results on Jul 24.
Reinsurance Group is primarily engaged in life reinsurance and international life and disability insurance on a direct and reinsurance basis. The company is set to release second-quarter results on Jul 27.
Cigna provides insurance plus related products and services in the United States and internationally. The company is slated to release second-quarter results on Aug 4.
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Brown & Brown (BRO) Q2 Earnings Beat, Revenues Improve Y/Y
Brown & Brown, Inc. (BRO - Free Report) reported second-quarter 2017 earnings of 49 cents per share that beat the Zacks Consensus Estimate by 4.3%. However, earnings remained flat year over year.
The quarter witnessed improved revenues, partially offset by a rise in expenses. Nonetheless, the company saw an increase in its commissions and fees.
Including change in estimated acquisition earn-out payables of 3 cents per share, net income came in at 46 cents per share, down 2.1% from the year-ago quarter.
Behind the Headlines
Total revenue amounted to $466.3 million, beating the Zacks Consensus Estimate of $465 million by approximately 0.3%. Also, the top line improved 4.4% year over year riding on higher commissions and fees. Organic revenue growth was 1.6% in the reported quarter.
Commissions and fees rose 4.3% year over year to $464.7 million.
Investment income fell 20% year over year to $0.4 million.
Total expenses increased 6.2% to $358.3 million, owing to a rise in employee compensation and benefits, other operating expenses, depreciation, interest as well as change in estimated acquisition earn-out payables.
Net income before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables (EBITDAC) margin decreased 120 basis points to 32.3%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. Price, Consensus and EPS Surprise | Brown & Brown, Inc. Quote
Financial Update
Brown & Brown exited the second quarter with cash and cash equivalents of $600.3 million, up 16.4% from the 2016-end level.
Long-term debt of $965.4 million as of Jun 30, 2017 was down 5.2% from $1.0184 billion at the end of 2016.
Dividend Update
In the second quarter, this Zacks Rank #4 (Sell) company’s board of directors announced a quarterly dividend of 14 cents per share.
On Jul 13, 2017, the company’s board approved a quarterly cash dividend of 13.5 cents per share. The dividend will be paid on Aug 16 to shareholders on record as of Aug 9, 2017.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Everest Re Group, Ltd. , Reinsurance Group of America, Incorporated (RGA - Free Report) and Cigna Corporation (CI - Free Report) . Each stock holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Everest Re Group offers reinsurance and insurance products. The company is set to release first-quarter results on Jul 24.
Reinsurance Group is primarily engaged in life reinsurance and international life and disability insurance on a direct and reinsurance basis. The company is set to release second-quarter results on Jul 27.
Cigna provides insurance plus related products and services in the United States and internationally. The company is slated to release second-quarter results on Aug 4.
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 >>