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What's in the Cards for Arthur J. Gallagher This Earnings Season?
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Key Takeaways
Strong new business, retention, and renewal premiums are expected to drive Q2 growth across segments.
Fees and commissions are projected to rise 12% and 12.5% year over year to $925M and $1.8B, respectively.
Strategic M&A and improved contingent revenues are likely to have boosted the top line.
Arthur J. Gallagher & Co. (AJG - Free Report) is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on July 31, after the closing bell.
The Zacks Consensus Estimate for AJG’s second-quarter revenues is pegged at $3.17 billion, indicating 15.8% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.36 per share. The Zacks Consensus Estimate for AJG’s second-quarter earnings has moved down 0.8% in the past 30 days. The estimate suggests a year-over-year increase of 4.4%.
What the Zacks Model Unveils for AJG
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -0.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AJG carries a Zacks Rank #4 (Sell) at present.
Factors Likely to Shape Q2 Results of AJG
Better performances in both segments are likely to aid AJG’s second-quarter results. New business, solid retention and higher renewal premiums across its business lines are likely to have benefited the second-quarter performance.
The Zacks Consensus Estimate for fees is pegged at $925 million, indicating an increase of 12% from the prior-year period’s reported number. The consensus mark for commissions is pegged at $1.8 billion, implying 12.5% growth from the prior-year period’s reported number.
Excellent client retention, strong new business production, and increases in customer business activity are expected to have favored the Risk management segment.
Continued strong customer retention, higher new business generation and increasing renewal premiums, an improvement in interest income earned on own and fiduciary funds are expected to have benefited the Brokerage segment.
Increased commissions and fees, higher supplemental revenues and improved contingent revenues and investment income, as well as strategic mergers and acquisitions, are likely to have driven the top line in the to-be-reported quarter.
Total expenses are likely to have increased mainly because of higher compensation, reimbursements, interest, amortization and changes in estimated acquisition earnout payables.
Stocks to Consider
Here are some insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
Old Republic International Corporation (ORI - Free Report) has an Earnings ESP of +3.45% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 73 cents per share, implying a decrease of 44.7% from the year-ago reported figure.
ORI’s earnings beat estimates in each of the last four quarters.
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What's in the Cards for Arthur J. Gallagher This Earnings Season?
Key Takeaways
Arthur J. Gallagher & Co. (AJG - Free Report) is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on July 31, after the closing bell.
The Zacks Consensus Estimate for AJG’s second-quarter revenues is pegged at $3.17 billion, indicating 15.8% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.36 per share. The Zacks Consensus Estimate for AJG’s second-quarter earnings has moved down 0.8% in the past 30 days. The estimate suggests a year-over-year increase of 4.4%.
What the Zacks Model Unveils for AJG
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -0.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Arthur J. Gallagher & Co. Price and EPS Surprise
Arthur J. Gallagher & Co. price-eps-surprise | Arthur J. Gallagher & Co. Quote
Zacks Rank: AJG carries a Zacks Rank #4 (Sell) at present.
Factors Likely to Shape Q2 Results of AJG
Better performances in both segments are likely to aid AJG’s second-quarter results. New business, solid retention and higher renewal premiums across its business lines are likely to have benefited the second-quarter performance.
The Zacks Consensus Estimate for fees is pegged at $925 million, indicating an increase of 12% from the prior-year period’s reported number. The consensus mark for commissions is pegged at $1.8 billion, implying 12.5% growth from the prior-year period’s reported number.
Excellent client retention, strong new business production, and increases in customer business activity are expected to have favored the Risk management segment.
Continued strong customer retention, higher new business generation and increasing renewal premiums, an improvement in interest income earned on own and fiduciary funds are expected to have benefited the Brokerage segment.
Increased commissions and fees, higher supplemental revenues and improved contingent revenues and investment income, as well as strategic mergers and acquisitions, are likely to have driven the top line in the to-be-reported quarter.
Total expenses are likely to have increased mainly because of higher compensation, reimbursements, interest, amortization and changes in estimated acquisition earnout payables.
Stocks to Consider
Here are some insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
Old Republic International Corporation (ORI - Free Report) has an Earnings ESP of +3.45% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 73 cents per share, implying a decrease of 44.7% from the year-ago reported figure.
ORI’s earnings beat estimates in each of the last four quarters.