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.
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.
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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.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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