We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brown & Brown (BRO) Q1 Earnings & Revenues Beat Estimates
Read MoreHide Full Article
Brown & Brown, Inc. (BRO - Free Report) reported first-quarter 2019 earnings of 41 cents per share, beating the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.2% year over year.
The quarter witnessed increased commissions and fees plus net investment income as well as increase in organic revenues. Though expenses increased, net income before interest, income taxes, depreciation, amortization and a change in estimated acquisition earn-out payables (EBITDAC) improved in the quarter.
Behind the Headlines
Adjusted revenues of $619.3 million beat the Zacks Consensus Estimate by 3.8%. Moreover, the top line rose 23.3% year over year, riding on higher commissions and fees plus net investment income. Organic revenues increased 2% in the reported quarter.
Commissions and fees grew 23.4% year over year to $617.5 million.
Investment income surged 83.3% year over year to $1.1 million.
Total expenses increased 22.9% to $470.8 million, driven by a rise in employee compensation and benefits as well as other operating expenses and interest expense.
EBITDAC was $197.1 million, up 25.8% year over year. EBITDAC margin expanded 60 basis points (bps) year over year to 31.8%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown exited the first quarter of 2019 with cash and cash equivalents of $624.9 million, down 19.6% from 2018-end level.
Long-term debt of $1.4 billion as of Mar 31, 2019 was down 1.2% from 2018 end.
Net cash provided by operating activities in the quarter was $5.4 million, much lower than $79.5 million generated in the year-ago quarter.
Dividend Update
The board of directors announced a regular quarterly cash dividend of 8 cents per share to shareholders of record as of May 8, 2019. The dividend will be paid on May 17.
Zacks Rank
Brown & Brown currently has a Zacks Rank #3 (Hold).
Of the insurance industry players that have reported first-quarter results so far, The Travelers Companies, Inc. (TRV - Free Report) , The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Brown & Brown (BRO) Q1 Earnings & Revenues Beat Estimates
Brown & Brown, Inc. (BRO - Free Report) reported first-quarter 2019 earnings of 41 cents per share, beating the Zacks Consensus Estimate by 13.9%. The bottom line improved 24.2% year over year.
The quarter witnessed increased commissions and fees plus net investment income as well as increase in organic revenues. Though expenses increased, net income before interest, income taxes, depreciation, amortization and a change in estimated acquisition earn-out payables (EBITDAC) improved in the quarter.
Behind the Headlines
Adjusted revenues of $619.3 million beat the Zacks Consensus Estimate by 3.8%. Moreover, the top line rose 23.3% year over year, riding on higher commissions and fees plus net investment income. Organic revenues increased 2% in the reported quarter.
Commissions and fees grew 23.4% year over year to $617.5 million.
Investment income surged 83.3% year over year to $1.1 million.
Total expenses increased 22.9% to $470.8 million, driven by a rise in employee compensation and benefits as well as other operating expenses and interest expense.
EBITDAC was $197.1 million, up 25.8% year over year. EBITDAC margin expanded 60 basis points (bps) year over year to 31.8%.
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 first quarter of 2019 with cash and cash equivalents of $624.9 million, down 19.6% from 2018-end level.
Long-term debt of $1.4 billion as of Mar 31, 2019 was down 1.2% from 2018 end.
Net cash provided by operating activities in the quarter was $5.4 million, much lower than $79.5 million generated in the year-ago quarter.
Dividend Update
The board of directors announced a regular quarterly cash dividend of 8 cents per share to shareholders of record as of May 8, 2019. The dividend will be paid on May 17.
Zacks Rank
Brown & Brown currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported first-quarter results so far, The Travelers Companies, Inc. (TRV - Free Report) , The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>