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Seeking Clues to Arthur J. Gallagher (AJG) Q3 Earnings? A Peek Into Wall Street Projections for Key Metrics

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The upcoming report from Arthur J. Gallagher (AJG - Free Report) is expected to reveal quarterly earnings of $2.51 per share, indicating an increase of 11.1% compared to the year-ago period. Analysts forecast revenues of $3.45 billion, representing an increase of 25.8% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during 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 typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Arthur J. Gallagher metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Revenues- Total Company- Fees' will reach $1.04 billion. The estimate indicates a year-over-year change of +10.6%.

The average prediction of analysts places 'Revenues- Total Company- Commissions' at $1.96 billion. The estimate suggests a change of +27.8% year over year.

Analysts' assessment points toward 'Revenues- Brokerage, as adjusted' reaching $2.96 billion. The estimate suggests a change of +24.9% year over year.

Analysts expect 'Revenues- Risk Management Segment- Revenues before reimbursements' to come in at $397.89 million. The estimate indicates a year-over-year change of +7.6%.

The collective assessment of analysts points to an estimated 'Revenues- Total Company- Interest income, premium finance revenues and other income' of $215.97 million. The estimate indicates a change of +59.6% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenues- Brokerage Segment- Supplemental revenues' should come in at $89.36 million. The estimate points to a change of +13% from the year-ago quarter.

It is projected by analysts that the 'Revenues- Brokerage Segment- Contingent revenues' will reach $70.11 million. The estimate suggests a change of +1.2% year over year.

Analysts predict that the 'Revenues- Brokerage Segment- Interest income, premium finance revenues and other income' will reach $200.50 million. The estimate points to a change of +60.4% from the year-ago quarter.

Analysts forecast 'Brokerage - Compensation expense ratio' to reach 54.5%. The estimate is in contrast to the year-ago figure of 56.9%.

Based on the collective assessment of analysts, 'Risk Management Segment - Operating expense ratio' should arrive at 17.9%. Compared to the present estimate, the company reported 19.2% in the same quarter last year.

The combined assessment of analysts suggests that 'Risk Management Segment - Compensation expense ratio' will likely reach 58.5%. The estimate is in contrast to the year-ago figure of 60.7%.

The consensus estimate for 'Brokerage - Operating expense ratio' stands at 13.8%. Compared to the present estimate, the company reported 14.3% in the same quarter last year.

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

Shares of Arthur J. Gallagher have experienced a change of -8.7% in the past month compared to the +3.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), AJG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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