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.
RLI Corp. (RLI) - $25 value - yours FREE >>
The Travelers Companies, Inc. (TRV) - $25 value - yours FREE >>
The Progressive Corporation (PGR) - $25 value - yours FREE >>
Image: Bigstock
Brown & Brown (BRO) Q3 Earnings & Revenues Beat, Up Y/Y
Brown & Brown, Inc. (BRO - Free Report) reported third-quarter 2020 earnings of 52 cents per share, which beat the Zacks Consensus Estimate by 23.8%. The bottom line surged 33.3% year over year.
The results reflect improved organic growth and margin expansion.
Behind the Headlines
Adjusted revenues of $674 million beat the Zacks Consensus Estimate by 4.8%. Moreover, the top line rose 8.9% year over year on higher commissions and fees. Organic revenues increased 4.3% in the reported quarter.
Commissions and fees grew 8.7% year over year to $671.4 million.
Investment income plunged 76.5% year over year to $0.4 million.
Total expenses increased 10.4% to $515.5 million due to a rise in employee compensation and amortization and depreciation.
EBITDAC was $220.8 million, up 13.2% year over year. EBITDAC margin expanded 130 basis points (bps) to 32.8%.
Brown Brown, Inc. Price, Consensus and EPS Surprise
Brown Brown, Inc. price-consensus-eps-surprise-chart | Brown Brown, Inc. Quote
Financial Update
Brown & Brown exited the third quarter with cash and cash equivalents of $1.5 billion, up about 56% from 2019-end level.
Long-term debt of $2 billion as of Sep 30, 2019 was up 36.5% from 2019 end.
Net cash provided by operating activities in the first nine months of 2020 was $539.6 million, up 20.7% year over year.
Dividend Update
The company paid cash dividend of 8.5 cents per share in the third quarter.
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 third-quarter results so far, The Progressive Corporation (PGR - Free Report) , The Travelers Companies (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate for earnings.
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 +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>