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Arthur J. Gallagher (AJG) Reports Q3 Earnings: What Key Metrics Have to Say
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For the quarter ended September 2024, Arthur J. Gallagher (AJG - Free Report) reported revenue of $2.74 billion, up 11.8% over the same period last year. EPS came in at $2.26, compared to $2.00 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.75 billion, representing a surprise of -0.15%. The company has not delivered EPS surprise, with the consensus EPS estimate being $2.26.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 56.9% versus the two-analyst average estimate of 54.9%.
Risk Management Segment - Operating expense ratio: 19.2% compared to the 18.2% average estimate based on two analysts.
Risk Management Segment - Compensation expense ratio: 60.7% versus the two-analyst average estimate of 57.9%.
Brokerage - Operating expense ratio: 14.3% versus 14.5% estimated by two analysts on average.
Revenues- Total Company- Commissions: $1.54 billion versus $1.57 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.
Revenues- Total Company- Fees: $945 million versus the four-analyst average estimate of $957.73 million. The reported number represents a year-over-year change of +11.7%.
Revenues- Brokerage, as adjusted: $2.37 billion versus $2.37 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.
Revenues- Risk Management Segment- Revenues before reimbursements: $369.70 million compared to the $368.66 million average estimate based on three analysts. The reported number represents a change of +11.7% year over year.
Revenues- Brokerage Segment- Fees: $585.20 million versus $599.77 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.
Revenues- Brokerage Segment- Supplemental revenues: $79.10 million versus $77.65 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
Revenues- Brokerage Segment- Contingent revenues: $69.30 million compared to the $59.69 million average estimate based on two analysts. The reported number represents a change of +28.6% year over year.
Revenues- Brokerage Segment- Interest income, premium finance revenues and other income: $125 million versus the two-analyst average estimate of $98 million.
Shares of Arthur J. Gallagher have returned +2.9% over the past month versus the Zacks S&P 500 composite's +1.5% 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 Q3 Earnings: What Key Metrics Have to Say
For the quarter ended September 2024, Arthur J. Gallagher (AJG - Free Report) reported revenue of $2.74 billion, up 11.8% over the same period last year. EPS came in at $2.26, compared to $2.00 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.75 billion, representing a surprise of -0.15%. The company has not delivered EPS surprise, with the consensus EPS estimate being $2.26.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 56.9% versus the two-analyst average estimate of 54.9%.
- Risk Management Segment - Operating expense ratio: 19.2% compared to the 18.2% average estimate based on two analysts.
- Risk Management Segment - Compensation expense ratio: 60.7% versus the two-analyst average estimate of 57.9%.
- Brokerage - Operating expense ratio: 14.3% versus 14.5% estimated by two analysts on average.
- Revenues- Total Company- Commissions: $1.54 billion versus $1.57 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.
- Revenues- Total Company- Fees: $945 million versus the four-analyst average estimate of $957.73 million. The reported number represents a year-over-year change of +11.7%.
- Revenues- Brokerage, as adjusted: $2.37 billion versus $2.37 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.
- Revenues- Risk Management Segment- Revenues before reimbursements: $369.70 million compared to the $368.66 million average estimate based on three analysts. The reported number represents a change of +11.7% year over year.
- Revenues- Brokerage Segment- Fees: $585.20 million versus $599.77 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.9% change.
- Revenues- Brokerage Segment- Supplemental revenues: $79.10 million versus $77.65 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
- Revenues- Brokerage Segment- Contingent revenues: $69.30 million compared to the $59.69 million average estimate based on two analysts. The reported number represents a change of +28.6% year over year.
- Revenues- Brokerage Segment- Interest income, premium finance revenues and other income: $125 million versus the two-analyst average estimate of $98 million.
View all Key Company Metrics for Arthur J. Gallagher here>>>Shares of Arthur J. Gallagher have returned +2.9% over the past month versus the Zacks S&P 500 composite's +1.5% 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.