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Brown & Brown (BRO) Q4 Earnings, Revenues Beat, Rise Y/Y
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Brown & Brown, Inc.’s (BRO - Free Report) fourth-quarter 2022 adjusted earnings of 50 cents per share beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 19% year over year.
The quarterly results reflected improved organic growth and higher net investment income, partly offset by higher expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Total revenues of $901.4 million beat the Zacks Consensus Estimate by 0.6%. The top line improved 22.1% year over year. The upside can be primarily attributed to commission and fees, which grew 21.3% year over year to $864.8 million.
Organic revenues improved 7.8% to $764.7 million in the quarter under review.
Investment income increased year over year to $4.7 million from $0.2 million in the year-ago quarter.
Adjusted EBITDAC was $283.1 million, up 34.9% year over year. EBITDAC margin expanded 560 basis points year over year to 31.2%.
Total expenses increased 18.3% to $707.2 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest expenses.
Financial Update
Brown & Brown exited 2022 with cash and cash equivalents of $579.5 million, up 38.3% from the 2021-end level.
Long-term debt of $4 billion as of Dec 31, 2022 nearly doubled from 2021 end.
Net cash provided by operating activities in 2022 was $881.4 million, up 5% year over year.
Full-Year 2022 Highlights
Full-year adjusted earnings of $2.28 per share beat the Zacks Consensus Estimate of $2.24. The bottom line increased 6.5% year over year.
Revenues of $3.6 billion increased 17.1% year over year and were almost in line with the consensus estimate.
Commissions and fees increased 16.9%, while organic revenues grew 8.1%.
Adjusted EBITDAC was $1.2 billion, up 15.9% year over year. EBITDAC margin contracted 40 basis points year over year to 31.2%.
Zacks Rank
Brown & Brown currently carries a Zacks Rank #4 (Sell).
AXIS Capital Holdings Limited (AXS - Free Report) is set to report fourth-quarter 2022 results on Jan 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.70, indicating a decrease of 20.2% from the year-ago quarter’s reported figure.
AXIS Capital delivered an earnings surprise in three of the last four reported quarters, while missing in one.
RLI Corporation (RLI - Free Report) is set to report fourth-quarter 2022 results on Jan 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.08, indicating a decrease of 14.3% from the year-ago quarter’s reported figure.
RLI delivered an earnings surprise in each of the last four reported quarters.
The Progressive Corporation (PGR - Free Report) is set to report fourth-quarter 2022 results on Jan 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.49, indicating an increase of 41.9% from the year-ago quarter’s reported figure.
Progressive delivered an earnings surprise in one of the last four reported quarters, missed in two while meeting estimates in one.
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Brown & Brown (BRO) Q4 Earnings, Revenues Beat, Rise Y/Y
Brown & Brown, Inc.’s (BRO - Free Report) fourth-quarter 2022 adjusted earnings of 50 cents per share beat the Zacks Consensus Estimate by 13.4%. The bottom line increased 19% year over year.
The quarterly results reflected improved organic growth and higher net investment income, partly offset by higher expenses.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. price-consensus-eps-surprise-chart | Brown & Brown, Inc. Quote
Q4 Details
Total revenues of $901.4 million beat the Zacks Consensus Estimate by 0.6%. The top line improved 22.1% year over year. The upside can be primarily attributed to commission and fees, which grew 21.3% year over year to $864.8 million.
Organic revenues improved 7.8% to $764.7 million in the quarter under review.
Investment income increased year over year to $4.7 million from $0.2 million in the year-ago quarter.
Adjusted EBITDAC was $283.1 million, up 34.9% year over year. EBITDAC margin expanded 560 basis points year over year to 31.2%.
Total expenses increased 18.3% to $707.2 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation and interest expenses.
Financial Update
Brown & Brown exited 2022 with cash and cash equivalents of $579.5 million, up 38.3% from the 2021-end level.
Long-term debt of $4 billion as of Dec 31, 2022 nearly doubled from 2021 end.
Net cash provided by operating activities in 2022 was $881.4 million, up 5% year over year.
Full-Year 2022 Highlights
Full-year adjusted earnings of $2.28 per share beat the Zacks Consensus Estimate of $2.24. The bottom line increased 6.5% year over year.
Revenues of $3.6 billion increased 17.1% year over year and were almost in line with the consensus estimate.
Commissions and fees increased 16.9%, while organic revenues grew 8.1%.
Adjusted EBITDAC was $1.2 billion, up 15.9% year over year. EBITDAC margin contracted 40 basis points year over year to 31.2%.
Zacks Rank
Brown & Brown currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
AXIS Capital Holdings Limited (AXS - Free Report) is set to report fourth-quarter 2022 results on Jan 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.70, indicating a decrease of 20.2% from the year-ago quarter’s reported figure.
AXIS Capital delivered an earnings surprise in three of the last four reported quarters, while missing in one.
RLI Corporation (RLI - Free Report) is set to report fourth-quarter 2022 results on Jan 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.08, indicating a decrease of 14.3% from the year-ago quarter’s reported figure.
RLI delivered an earnings surprise in each of the last four reported quarters.
The Progressive Corporation (PGR - Free Report) is set to report fourth-quarter 2022 results on Jan 25. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.49, indicating an increase of 41.9% from the year-ago quarter’s reported figure.
Progressive delivered an earnings surprise in one of the last four reported quarters, missed in two while meeting estimates in one.