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Brown & Brown (BRO) Q2 Earnings & Revenues Beat Estimates
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Brown & Brown, Inc. (BRO - Free Report) second-quarter 2021 adjusted earnings of 49 cents per share beat the Zacks Consensus Estimate by 22.5%. The bottom line also improved 44.1% year over year.
Higher commissions and fees drove the company’s results, partly offset by increased expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Total revenues of $727 million outpaced the Zacks Consensus Estimate by 5.7%. Moreover, the top line improved 21.4% year over year. The upside can primarily be attributed to improved commission and fees, and high organic growth.
Commissions and fees grew 21.3% year over year to $725.9 million. Organic revenues increased 14.7% to $658.4 million in the quarter under review.
Investment income plunged 33.3% year over year to $0.2 million.
EBITDAC was $239.3 million, up 35.4% year over year. EBITDAC margin expanded 340 basis points (bps) year over year to 32.9%.
Total expenses increased 15.2% to $541 million, courtesy of a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest.
Financial Update
Brown & Brown exited second-quarter 2021 with cash and cash equivalents of $850.2 million, up 4% from 2020-end level.
Long-term debt of $1.7 billion as of Jun 30, 2021 was down 13% from 2020 end.
Net cash provided by operating activities in the first half of 2021 was $466.3 million, up 11.9% year over year.
Dividend Update
On Jul 21, Brown & Brown declared cash dividend of 9.25 cents per share. The dividend will be paid out on Aug 18, 2021 to shareholders of record as of Aug 11.
Among other insurance industry players, which have reported second-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) , RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate.
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Brown & Brown (BRO) Q2 Earnings & Revenues Beat Estimates
Brown & Brown, Inc. (BRO - Free Report) second-quarter 2021 adjusted earnings of 49 cents per share beat the Zacks Consensus Estimate by 22.5%. The bottom line also improved 44.1% year over year.
Higher commissions and fees drove the company’s results, partly offset by increased expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Q2 in Details
Total revenues of $727 million outpaced the Zacks Consensus Estimate by 5.7%. Moreover, the top line improved 21.4% year over year. The upside can primarily be attributed to improved commission and fees, and high organic growth.
Commissions and fees grew 21.3% year over year to $725.9 million. Organic revenues increased 14.7% to $658.4 million in the quarter under review.
Investment income plunged 33.3% year over year to $0.2 million.
EBITDAC was $239.3 million, up 35.4% year over year. EBITDAC margin expanded 340 basis points (bps) year over year to 32.9%.
Total expenses increased 15.2% to $541 million, courtesy of a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest.
Financial Update
Brown & Brown exited second-quarter 2021 with cash and cash equivalents of $850.2 million, up 4% from 2020-end level.
Long-term debt of $1.7 billion as of Jun 30, 2021 was down 13% from 2020 end.
Net cash provided by operating activities in the first half of 2021 was $466.3 million, up 11.9% year over year.
Dividend Update
On Jul 21, Brown & Brown declared cash dividend of 9.25 cents per share. The dividend will be paid out on Aug 18, 2021 to shareholders of record as of Aug 11.
Zacks Rank & Performance of Other Insurers
Brown & Brown currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other insurance industry players, which have reported second-quarter earnings so far, the bottom line of The Progressive Corporation (PGR - Free Report) , RLI Corp. (RLI - Free Report) and The Travelers Companies, Inc. (TRV - Free Report) beat the respective Zacks Consensus Estimate.