Arthur J. Gallagher & Co. (AJG - Free Report) is slated to report first-quarter 2020 results on Apr 30, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.1 billion, suggesting an improvement of 5.8% from the prior-year quarter.
The same for earnings per share is pegged at $1.75, indicating growth of 7.4% from the year-ago reported figure.
Key Factors to Note
Arthur J. Gallagher’s first-quarter performance is likely to have benefited from higher revenues, which is likely to have been driven by improved commissions and fees. Notably, the Zacks Consensus Estimate for first-quarter commissions is pegged at $1.1 billion, indicating growth of 13.5% from the prior-year reported figure. Also, the consensus estimates for first-quarter fees is pegged at $500 million, suggesting an improvement of 7.5% from the year-ago quarter.
Moreover, Arthur J. Gallagher’s first-quarter results are likely to reflect strong revenues in Brokerage and Risk Management segments. The Zacks Consensus Estimate for first-quarter 2020 revenues at Brokerage segment is pegged at $1.5 billion, indicating growth of 10.3% from the prior-year quarter. Further, the consensus mark for Risk Management segment’s revenues is pegged at $250 million, suggesting growth of 5.8% from the prior-year reported figure.
However, the company’s Corporate segment is likely to reflect softer revenues in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter revenues at this segment is pegged at $338 million, which indicates a decline of 9.2% from the year-ago quarter.
Nevertheless, strong international operations riding on several non-U.S. buyouts are likely to have driven Arthur J. Gallagher’s performance. Improved operational excellence is likely to have contributed to the company’s first-quarter performance.
Increased expenses related to compensation, reimbursements, interest, amortization and depreciation are likely to have impacted the first-quarter performance.
Earnings Surprise History
The company has a trailing four-quarter positive earnings surprise of 4.12%, on average.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -2.78%. This is because the Most Accurate Estimate of $1.70 is pegged lower than the Zacks Consensus Estimate of $1.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arthur J. Gallagher carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the insurance space with a right combination to surpass estimates in the upcoming quarterly releases are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on May 5.
Marsh & McLennan Companies, Inc. (MMC - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on Apr 30.
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Arthur J. Gallagher & Co. (AJG - Free Report) is slated to report first-quarter 2020 results on Apr 30, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.1 billion, suggesting an improvement of 5.8% from the prior-year quarter.
The same for earnings per share is pegged at $1.75, indicating growth of 7.4% from the year-ago reported figure.
Key Factors to Note
Arthur J. Gallagher’s first-quarter performance is likely to have benefited from higher revenues, which is likely to have been driven by improved commissions and fees. Notably, the Zacks Consensus Estimate for first-quarter commissions is pegged at $1.1 billion, indicating growth of 13.5% from the prior-year reported figure. Also, the consensus estimates for first-quarter fees is pegged at $500 million, suggesting an improvement of 7.5% from the year-ago quarter.
Moreover, Arthur J. Gallagher’s first-quarter results are likely to reflect strong revenues in Brokerage and Risk Management segments. The Zacks Consensus Estimate for first-quarter 2020 revenues at Brokerage segment is pegged at $1.5 billion, indicating growth of 10.3% from the prior-year quarter. Further, the consensus mark for Risk Management segment’s revenues is pegged at $250 million, suggesting growth of 5.8% from the prior-year reported figure.
However, the company’s Corporate segment is likely to reflect softer revenues in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter revenues at this segment is pegged at $338 million, which indicates a decline of 9.2% from the year-ago quarter.
Nevertheless, strong international operations riding on several non-U.S. buyouts are likely to have driven Arthur J. Gallagher’s performance. Improved operational excellence is likely to have contributed to the company’s first-quarter performance.
Increased expenses related to compensation, reimbursements, interest, amortization and depreciation are likely to have impacted the first-quarter performance.
Earnings Surprise History
The company has a trailing four-quarter positive earnings surprise of 4.12%, on average.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -2.78%. This is because the Most Accurate Estimate of $1.70 is pegged lower than the Zacks Consensus Estimate of $1.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arthur J. Gallagher carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the insurance space with a right combination to surpass estimates in the upcoming quarterly releases are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on May 5.
Marsh & McLennan Companies, Inc. (MMC - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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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