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Brown & Brown (BRO) Q4 Earnings & Revenues Beat Estimates
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Brown & Brown, Inc. (BRO - Free Report) fourth-quarter 2019 adjusted earnings of 28 cents per share beat the Zacks Consensus Estimate by 3.7% and grew 7.7% year over year.
Earnings were driven by higher commissions and fees, increased investment income and recent acquisitions.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Total revenues of $579 million beat the Zacks Consensus Estimate by 1.9%. Moreover, the top line rose 13.7% year over year on higher commissions and fees plus net investment income.
Commissions and fees grew 13.6% year over year to $577 million. Investment income surged 150% year over year to $1.5 million.
Total expenses increased 16.9% to $477 million due to a rise in employee compensation and benefits, amortization, change in estimated acquisition earn-out payables as well as other operating expenses and interest expense.
EBITDAC was $156.2 million, up 9.2% year over year. EBITDAC margin contracted 110 basis points year over year to 27%.
Financial Update
Brown & Brown exited the fourth quarter of 2019 with cash and cash equivalents of $542.2 million, up 23.5% from 2018-end level.
Long-term debt of $1.5 billion as of Dec 31, 2019 was up 3% from 2018 end.
Net cash provided by operating activities in the year 2019 was $678.2 million, up 19.5% year over year.
Dividend Update
The company paid out cash dividend of 8.5 cents per share in the fourth quarter, up 6.3% year over year.
Acquisition Update
Brown & Brown closed four acquisitions in the reported quarter.
Zacks Rank
Brown & Brown currently has a Zacks Rank #2 (Buy).
Of the insurance industry players that have reported fourth-quarter results so far, RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Upcoming Releases
Principal Financial Group, Inc. (PFG - Free Report) will release fourth-quarter 2019 earnings on Jan 28 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.42 per share.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Brown & Brown (BRO) Q4 Earnings & Revenues Beat Estimates
Brown & Brown, Inc. (BRO - Free Report) fourth-quarter 2019 adjusted earnings of 28 cents per share beat the Zacks Consensus Estimate by 3.7% and grew 7.7% year over year.
Earnings were driven by higher commissions and fees, increased investment income and recent acquisitions.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Behind the Headlines
Total revenues of $579 million beat the Zacks Consensus Estimate by 1.9%. Moreover, the top line rose 13.7% year over year on higher commissions and fees plus net investment income.
Commissions and fees grew 13.6% year over year to $577 million.
Investment income surged 150% year over year to $1.5 million.
Total expenses increased 16.9% to $477 million due to a rise in employee compensation and benefits, amortization, change in estimated acquisition earn-out payables as well as other operating expenses and interest expense.
EBITDAC was $156.2 million, up 9.2% year over year. EBITDAC margin contracted 110 basis points year over year to 27%.
Financial Update
Brown & Brown exited the fourth quarter of 2019 with cash and cash equivalents of $542.2 million, up 23.5% from 2018-end level.
Long-term debt of $1.5 billion as of Dec 31, 2019 was up 3% from 2018 end.
Net cash provided by operating activities in the year 2019 was $678.2 million, up 19.5% year over year.
Dividend Update
The company paid out cash dividend of 8.5 cents per share in the fourth quarter, up 6.3% year over year.
Acquisition Update
Brown & Brown closed four acquisitions in the reported quarter.
Zacks Rank
Brown & Brown currently has a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Insurance Releases
Of the insurance industry players that have reported fourth-quarter results so far, RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Upcoming Releases
Principal Financial Group, Inc. (PFG - Free Report) will release fourth-quarter 2019 earnings on Jan 28 after market close. The Zacks Consensus Estimate for earnings is pegged at $1.42 per share.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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