We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) Up 4.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Brown & Brown (BRO - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Brown & Brown due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Brown & Brown, Inc. before we dive into how investors and analysts have reacted as of late.
Brown & Brown Q2 Earnings Beat Estimates, Commission and Fees Up Y/Y
Brown & Brown, Inc.’s second-quarter 2025 adjusted earnings of 1.03 per share beat the Zacks Consensus Estimate by 4%. The bottom line increased 10.8% year over year. The quarterly results reflected improved organic revenues, expanded EBITDAC margin and increased net investment income, offset by higher expenses.
Q2 Details
Total revenues of $1.3 billion beat the Zacks Consensus Estimate by 0.7%. The top line improved 9.1% year over year. The upside can be primarily attributed to commission and fees, which grew 7.7% year over year to $1.2 billion. Our estimate for commission and fees growth was 8.5%.
Organic revenues improved 3.6% year over year to $1.2 billion in the quarter under review. Investment income increased year over year to $36 million. The Zacks Consensus Estimate for the metric was pegged at $18.6 million, and our estimate was $22.9 million.
Adjusted EBITDAC was $471 million, up 12.1% year over year. EBITDAC margin expanded 100 basis points (bps) year over year to 36.7%. Our estimate for adjusted EBITDAC was $434.5 million. Total expenses increased 17.1% year over year to $974 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation, and interest. Our estimate was $960.8 million.
Financial Update
Brown & Brown exited the second quarter with cash and cash equivalents of $8.9 billion, which increased more than 13-fold from the 2024-end level. Long-term debt was $7.5 billion as of June 30, 2025, up 107.5% from the 2024-end level. Net cash provided by operating activities in the first half of 2025 was $538 million, up 44.2% year over year.
Dividend Update
The board of directors approved a regular quarterly cash dividend of 15 cents per share to be paid out on Aug. 20, 2025, to shareholders of record as of Aug. 13.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Brown & Brown has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Brown & Brown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Brown & Brown is part of the Zacks Insurance - Brokerage industry. Over the past month, Aon (AON - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended June 2025 more than a month ago.
Aon reported revenues of $4.16 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $3.49 for the same period compares with $2.93 a year ago.
For the current quarter, Aon is expected to post earnings of $2.89 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Aon. Also, the stock has a VGM Score of F.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Brown & Brown (BRO) Up 4.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Brown & Brown (BRO - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Brown & Brown due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Brown & Brown, Inc. before we dive into how investors and analysts have reacted as of late.
Brown & Brown Q2 Earnings Beat Estimates, Commission and Fees Up Y/Y
Brown & Brown, Inc.’s second-quarter 2025 adjusted earnings of 1.03 per share beat the Zacks Consensus Estimate by 4%. The bottom line increased 10.8% year over year. The quarterly results reflected improved organic revenues, expanded EBITDAC margin and increased net investment income, offset by higher expenses.
Q2 Details
Total revenues of $1.3 billion beat the Zacks Consensus Estimate by 0.7%. The top line improved 9.1% year over year. The upside can be primarily attributed to commission and fees, which grew 7.7% year over year to $1.2 billion. Our estimate for commission and fees growth was 8.5%.
Organic revenues improved 3.6% year over year to $1.2 billion in the quarter under review. Investment income increased year over year to $36 million. The Zacks Consensus Estimate for the metric was pegged at $18.6 million, and our estimate was $22.9 million.
Adjusted EBITDAC was $471 million, up 12.1% year over year. EBITDAC margin expanded 100 basis points (bps) year over year to 36.7%. Our estimate for adjusted EBITDAC was $434.5 million. Total expenses increased 17.1% year over year to $974 million due to a rise in employee compensation and benefits, other operating expenses, amortization, depreciation, and interest. Our estimate was $960.8 million.
Financial Update
Brown & Brown exited the second quarter with cash and cash equivalents of $8.9 billion, which increased more than 13-fold from the 2024-end level.
Long-term debt was $7.5 billion as of June 30, 2025, up 107.5% from the 2024-end level. Net cash provided by operating activities in the first half of 2025 was $538 million, up 44.2% year over year.
Dividend Update
The board of directors approved a regular quarterly cash dividend of 15 cents per share to be paid out on Aug. 20, 2025, to shareholders of record as of Aug. 13.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Brown & Brown has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Brown & Brown has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Brown & Brown is part of the Zacks Insurance - Brokerage industry. Over the past month, Aon (AON - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended June 2025 more than a month ago.
Aon reported revenues of $4.16 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $3.49 for the same period compares with $2.93 a year ago.
For the current quarter, Aon is expected to post earnings of $2.89 per share, indicating a change of +6.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Aon. Also, the stock has a VGM Score of F.