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Brown & Brown (BRO) Down 0.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Brown & Brown (BRO - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Brown & Brown due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Brown & Brown Q1 Earnings & Revenues Beat Estimates
Brown & Brown, Inc. first-quarter 2021 adjusted earnings of 70 cents per share beat the Zacks Consensus Estimate by 25%. Moreover, the bottom line improved 37.3% year over year.
Results benefited from more new business, good retention, and rate increases across all four divisions.
Q1 in Details
Total revenues of $815.3 million outpaced the Zacks Consensus Estimate by 7.9%. Moreover, the top line improved 16.7% year over year. The upside can primarily be attributed to increased commission and fees, and high organic growth.
Commissions and fees grew 16.9% year over year to $814 million. Organic revenues improved 9.8% to $734.1 million in the quarter under review. Investment income decreased 75% year over year to $0.3 million.
EBITDAC was $291.6 million, up 20.5% year over year. EBITDAC margin expanded 120 basis points year over year to 35.8%. Total expenses increased 16.8% to $576.1 million, courtesy of a rise in employee compensation and benefits, and amortization, interest and depreciation.
Financial Update
Brown & Brown exited first-quarter 2021 with cash and cash equivalents of $678.7 million, down 16.9% from 2020-end level. Long-term debt of $2 billion as of Mar 31, 2021 was down 0.8% from 2020 end. Net cash provided by operating activities in the first quarter was $125.1 million, up more than threefold year over year.
Dividend Update
Concurrent with the earnings release, Brown & Brown has declared cash dividend of 9.25 cents per share in the first quarter. The dividend will be paid on May 19, 2021 to shareholders of record as of May 10.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Brown & Brown has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Brown & Brown has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Brown & Brown (BRO) Down 0.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Brown & Brown (BRO - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Brown & Brown due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Brown & Brown Q1 Earnings & Revenues Beat Estimates
Brown & Brown, Inc. first-quarter 2021 adjusted earnings of 70 cents per share beat the Zacks Consensus Estimate by 25%. Moreover, the bottom line improved 37.3% year over year.
Results benefited from more new business, good retention, and rate increases across all four divisions.
Q1 in Details
Total revenues of $815.3 million outpaced the Zacks Consensus Estimate by 7.9%. Moreover, the top line improved 16.7% year over year. The upside can primarily be attributed to increased commission and fees, and high organic growth.
Commissions and fees grew 16.9% year over year to $814 million. Organic revenues improved 9.8% to $734.1 million in the quarter under review. Investment income decreased 75% year over year to $0.3 million.
EBITDAC was $291.6 million, up 20.5% year over year. EBITDAC margin expanded 120 basis points year over year to 35.8%. Total expenses increased 16.8% to $576.1 million, courtesy of a rise in employee compensation and benefits, and amortization, interest and depreciation.
Financial Update
Brown & Brown exited first-quarter 2021 with cash and cash equivalents of $678.7 million, down 16.9% from 2020-end level. Long-term debt of $2 billion as of Mar 31, 2021 was down 0.8% from 2020 end. Net cash provided by operating activities in the first quarter was $125.1 million, up more than threefold year over year.
Dividend Update
Concurrent with the earnings release, Brown & Brown has declared cash dividend of 9.25 cents per share in the first quarter. The dividend will be paid on May 19, 2021 to shareholders of record as of May 10.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Brown & Brown has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Brown & Brown has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.