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Arthur J. Gallagher (AJG) Reports Q2 Earnings: What Key Metrics Have to Say
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Arthur J. Gallagher (AJG - Free Report) reported $2.41 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 19.8%. EPS of $1.90 for the same period compares to $1.70 a year ago.
The reported revenue represents a surprise of +2.41% over the Zacks Consensus Estimate of $2.35 billion. With the consensus EPS estimate being $1.86, the EPS surprise was +2.15%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Brokerage - Compensation expense ratio: 57.3% versus 55.26% estimated by three analysts on average.
Risk Management Segment - Operating expense ratio: 21.3% versus 21.53% estimated by three analysts on average.
Risk Management Segment - Compensation expense ratio: 59.7% compared to the 57.47% average estimate based on three analysts.
Brokerage - Operating expense ratio: 15.7% versus 14.14% estimated by three analysts on average.
Revenue- Fees: $790.50 million versus $676.56 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +33.8% change.
Revenue- Commissions: $1.41 billion versus the five-analyst average estimate of $1.49 billion. The reported number represents a year-over-year change of +10%.
Revenue Brokerage Segment- Commissions: $1.41 billion versus the four-analyst average estimate of $1.50 billion.
Revenue Risk Management Segment- Revenues before reimbursements: $318.60 million versus the four-analyst average estimate of $301.67 million.
Revenue Risk Management Segment- Fees: $312 million compared to the $299.18 million average estimate based on three analysts.
Total revenue- Brokerage: $2.09 billion compared to the $2.03 billion average estimate based on three analysts. The reported number represents a change of +20% year over year.
Revenue Brokerage Segment- Investment income and net gains on divestitures: $74.10 million versus the three-analyst average estimate of $49.87 million.
Revenue Brokerage Segment- Contingent revenues: $54.20 million versus the three-analyst average estimate of $55.90 million.
Shares of Arthur J. Gallagher have returned +4.2% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Arthur J. Gallagher (AJG) Reports Q2 Earnings: What Key Metrics Have to Say
Arthur J. Gallagher (AJG - Free Report) reported $2.41 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 19.8%. EPS of $1.90 for the same period compares to $1.70 a year ago.
The reported revenue represents a surprise of +2.41% over the Zacks Consensus Estimate of $2.35 billion. With the consensus EPS estimate being $1.86, the EPS surprise was +2.15%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Brokerage - Compensation expense ratio: 57.3% versus 55.26% estimated by three analysts on average.
- Risk Management Segment - Operating expense ratio: 21.3% versus 21.53% estimated by three analysts on average.
- Risk Management Segment - Compensation expense ratio: 59.7% compared to the 57.47% average estimate based on three analysts.
- Brokerage - Operating expense ratio: 15.7% versus 14.14% estimated by three analysts on average.
- Revenue- Fees: $790.50 million versus $676.56 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +33.8% change.
- Revenue- Commissions: $1.41 billion versus the five-analyst average estimate of $1.49 billion. The reported number represents a year-over-year change of +10%.
- Revenue Brokerage Segment- Commissions: $1.41 billion versus the four-analyst average estimate of $1.50 billion.
- Revenue Risk Management Segment- Revenues before reimbursements: $318.60 million versus the four-analyst average estimate of $301.67 million.
- Revenue Risk Management Segment- Fees: $312 million compared to the $299.18 million average estimate based on three analysts.
- Total revenue- Brokerage: $2.09 billion compared to the $2.03 billion average estimate based on three analysts. The reported number represents a change of +20% year over year.
- Revenue Brokerage Segment- Investment income and net gains on divestitures: $74.10 million versus the three-analyst average estimate of $49.87 million.
- Revenue Brokerage Segment- Contingent revenues: $54.20 million versus the three-analyst average estimate of $55.90 million.
View all Key Company Metrics for Arthur J. Gallagher here>>>Shares of Arthur J. Gallagher have returned +4.2% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.