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What Analyst Projections for Key Metrics Reveal About Arthur J. Gallagher (AJG) Q4 Earnings

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Analysts on Wall Street project that Arthur J. Gallagher (AJG - Free Report) will announce quarterly earnings of $1.83 per share in its forthcoming report, representing an increase of 18.8% year over year. Revenues are projected to reach $2.37 billion, increasing 18.6% from the same quarter last year.

Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Bearing this in mind, let's now explore the average estimates of specific Arthur J. Gallagher metrics that are commonly monitored and projected by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Revenue- Fees' of $771.27 million. The estimate indicates a year-over-year change of +17.8%.

The average prediction of analysts places 'Revenue- Commissions' at $1.37 billion. The estimate indicates a change of +18.8% from the prior-year quarter.

The combined assessment of analysts suggests that 'Revenue Risk Management Segment- Revenues before reimbursements' will likely reach $336.69 million. The estimate indicates a change of +15.9% from the prior-year quarter.

Analysts' assessment points toward 'Investment income and net gains on divestitures' reaching $89.06 million. The estimate indicates a change of +32.3% from the prior-year quarter.

The consensus among analysts is that 'Revenue Brokerage Segment- Fees' will reach $462.17 million. The estimate suggests a change of +26.5% year over year.

Analysts expect 'Revenue Brokerage Segment- Supplemental revenues' to come in at $83.39 million. The estimate suggests a change of +4.2% year over year.

Analysts forecast 'Revenue Brokerage Segment- Commissions' to reach $1.34 billion. The estimate points to a change of +16.2% from the year-ago quarter.

The consensus estimate for 'Total revenue- Brokerage' stands at $2.01 billion. The estimate points to a change of +18.1% from the year-ago quarter.

Analysts predict that the 'Brokerage - Operating expense ratio' will reach 15.7%. Compared to the current estimate, the company reported 16.6% in the same quarter of the previous year.

It is projected by analysts that the 'Risk Management Segment - Operating expense ratio' will reach 19.1%. Compared to the current estimate, the company reported 20.3% in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Risk Management Segment - Compensation expense ratio' should arrive at 55.3%. Compared to the current estimate, the company reported 61.2% in the same quarter of the previous year.

According to the collective judgment of analysts, 'Brokerage - Compensation expense ratio' should come in at 56.1%. Compared to the present estimate, the company reported 56.5% in the same quarter last year.

View all Key Company Metrics for Arthur J. Gallagher here>>>

Arthur J. Gallagher shares have witnessed a change of +7.1% in the past month, in contrast to the Zacks S&P 500 composite's +1.6% move. With a Zacks Rank #3 (Hold), AJG is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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