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
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.
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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
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.
Today, See These 5 Potential Home Runs >>
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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