We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brown & Brown (BRO) Beats on Q4 Earnings and Revenues
Read MoreHide Full Article
Brown & Brown Inc.’s (BRO - Free Report) fourth-quarter 2016 earnings per share of 42 cents per share came in a penny above the Zacks Consensus Estimate. Moreover, reported earnings showed a 10.5% year-over-year improvement driven by higher revenues.
Total revenue in the quarter amounted to $433.6 million, which beat the Zacks Consensus Estimate of $429 million. Also, the top line improved 7.1% year over year on higher commissions and fees. Organic revenue growth was 3.5% in the reported quarter.
Commissions and fees climbed nearly 7.1% to $423.1 million on the back of higher commissions across the four divisions – National Program, Services, Wholesale Brokerage and Retail.
National Program commission grew 5.3%, Services commission increased 12.6%, Wholesale Brokerage commission improved 19.9% and Retail commission rose 4.1%.
Investment income remained flat year over year at $0.3 million.
Total expense increased 9.4% to $338.6 million due to rise in employee compensation and benefits, other operating expenses, and higher interest expenses. The rise in expenses offset top-line improvement, resulting in a 0.2% decrease in pre-tax income to $95 million.
Net income before interest, income taxes, depreciation, amortization and the change in estimated acquisition earn-out payables (EBITDAC) margin contracted 200 basis points to 30.9%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Adjusted earnings per share of $1.86 beat the Zacks consensus Estimate by 3 cents.
Revenues came in at $1.77 billion, up 6.4% year over year.
Financial Update
Brown & Brown exited 2016 with cash and cash equivalents of $781.3 million, up about 16% from year-end 2015.
Long-term debt was $1.018 billion as of Dec 31, 2016, down 5% from $1.071 billion at the end of 2015.
Dividend Update
This Zacks Rank #3 (Hold) company’s board of directors declared a quarterly cash dividend of 14 cents per share on Jan 20. The dividend will be paid on Feb 15, to shareholders on record as of Feb 3.
Insurance Stocks Worth a Look
MGIC Investment Corp. (MTG - Free Report) reported fourth-quarter 2016 operating net income per share of 28 cents, which outpaced the Zacks Consensus Estimate of 22 cents by 27%.
Radian Group Inc. (RDN - Free Report) is a credit enhancement company that supports homebuyers, mortgage lenders, loan servicers and investors with a suite of private mortgage insurance and related risk-management products and services. It is slated to report fourth-quarter results on Jan 26. The Zacks Consensus Estimate is currently pegged at 40 cents. The stock sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here
Prudential Financial Inc. (PRU - Free Report) offers financial products and services including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. It is likely to report fourth-quarter results on Feb 8. The Zacks Consensus Estimate is currently pegged at $2.31. The stock carries Zacks Rank #2 (Buy).
Zacks' Top 10 Stocks for 2017In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Brown & Brown (BRO) Beats on Q4 Earnings and Revenues
Brown & Brown Inc.’s (BRO - Free Report) fourth-quarter 2016 earnings per share of 42 cents per share came in a penny above the Zacks Consensus Estimate. Moreover, reported earnings showed a 10.5% year-over-year improvement driven by higher revenues.
Behind the Headlines
Total revenue in the quarter amounted to $433.6 million, which beat the Zacks Consensus Estimate of $429 million. Also, the top line improved 7.1% year over year on higher commissions and fees. Organic revenue growth was 3.5% in the reported quarter.
Commissions and fees climbed nearly 7.1% to $423.1 million on the back of higher commissions across the four divisions – National Program, Services, Wholesale Brokerage and Retail.
National Program commission grew 5.3%, Services commission increased 12.6%, Wholesale Brokerage commission improved 19.9% and Retail commission rose 4.1%.
Investment income remained flat year over year at $0.3 million.
Total expense increased 9.4% to $338.6 million due to rise in employee compensation and benefits, other operating expenses, and higher interest expenses. The rise in expenses offset top-line improvement, resulting in a 0.2% decrease in pre-tax income to $95 million.
Net income before interest, income taxes, depreciation, amortization and the change in estimated acquisition earn-out payables (EBITDAC) margin contracted 200 basis points to 30.9%.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. Price, Consensus and EPS Surprise | Brown & Brown, Inc. Quote
2016 Highlights
Adjusted earnings per share of $1.86 beat the Zacks consensus Estimate by 3 cents.
Revenues came in at $1.77 billion, up 6.4% year over year.
Financial Update
Brown & Brown exited 2016 with cash and cash equivalents of $781.3 million, up about 16% from year-end 2015.
Long-term debt was $1.018 billion as of Dec 31, 2016, down 5% from $1.071 billion at the end of 2015.
Dividend Update
This Zacks Rank #3 (Hold) company’s board of directors declared a quarterly cash dividend of 14 cents per share on Jan 20. The dividend will be paid on Feb 15, to shareholders on record as of Feb 3.
Insurance Stocks Worth a Look
MGIC Investment Corp. (MTG - Free Report) reported fourth-quarter 2016 operating net income per share of 28 cents, which outpaced the Zacks Consensus Estimate of 22 cents by 27%.
Radian Group Inc. (RDN - Free Report) is a credit enhancement company that supports homebuyers, mortgage lenders, loan servicers and investors with a suite of private mortgage insurance and related risk-management products and services. It is slated to report fourth-quarter results on Jan 26. The Zacks Consensus Estimate is currently pegged at 40 cents. The stock sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here
Prudential Financial Inc. (PRU - Free Report) offers financial products and services including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. It is likely to report fourth-quarter results on Feb 8. The Zacks Consensus Estimate is currently pegged at $2.31. The stock carries Zacks Rank #2 (Buy).
Zacks' Top 10 Stocks for 2017In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>