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Brown & Brown (BRO) Q4 Earnings & Revenues Top, Increase Y/Y
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Brown & Brown, Inc. (BRO - Free Report) reported fourth-quarter 2017 earnings of 47 cents per share, outpacing the Zacks Consensus Estimate by 11.9%. Also, the bottom line improved 11.9% year over year.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
The quarter witnessed noticeable organic revenue growth across all divisions, partially offset by a rise in expenses. Nonetheless, the company saw an increase in Commissions and fees segment in the reported quarter.
2017 Highlights
Adjusted earnings per share of $1.92 beat the Zacks Consensus Estimate by 2.1%.
Revenues came in at $1.9 billion, up 6.5% year over year.
Behind the Headlines
Total revenues amounted to $474.3 million, edging past the Zacks Consensus Estimate of $447 million by approximately 6.1%. Also, the top line improved 9.4% year over year riding on higher Commissions and fees plus net investment income. Organic revenue growth was 9.3% in the reported quarter.
Commissions and fees rose 9.3% year over year to $473.4 million.
Investment income soared 66.7% year over year to $0.5 million.
Total expenses increased nearly 8.7% to $368.0 million, driven by a rise in employee compensation and benefits, other operating expenses as well as depreciation.
Net income before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables (EBITDAC) margin contracted 70 basis points to 30.2%.
Financial Update
Brown & Brown exited the fourth quarter with cash and cash equivalents of $573.4 million, up nearly 11.2% from the 2016-end level.
Long-term debt of $856.1 million as of Dec 31, 2017 was down 15.9% from $1.0184 billion at the end of 2016.
Dividend Update
In the fourth quarter, this Zacks Rank #1 (Strong Buy) company’s board of directors announced a quarterly dividend of 15 cents per share.
On Jan 19, 2018, the company’s board approved a quarterly cash dividend of 15 cents per share, reflecting an 11.1% hike from the earlier payout of 13.5 cents. Notably, this dividend raise marks the 25th consecutive year of the same and will be rewarded to the shareholders of record as of Feb 2, 2018 on Feb 14.
Insurance Stocks Worth a Look
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2017 operating net income per share of 43 cents, which surpassed the Zacks Consensus Estimate of 27 cents by 59.3%.
American Financial Group, Inc. (AFG - Free Report) provides property and casualty insurance products in the United States. The company, set to release fourth-quarter results on Jan 31, has an Earnings ESP of +1.21% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial Corporation (CNA - Free Report) provides commercial property and casualty insurance products primarily in the United States. The company is expected to announce fourth-quarter results on Feb 5. The stock has an Earnings ESP of +2.75% and a Zacks Rank of 1.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Brown & Brown (BRO) Q4 Earnings & Revenues Top, Increase Y/Y
Brown & Brown, Inc. (BRO - Free Report) reported fourth-quarter 2017 earnings of 47 cents per share, outpacing the Zacks Consensus Estimate by 11.9%. Also, the bottom line improved 11.9% year over year.
Brown & Brown, Inc. Price, Consensus and EPS Surprise
Brown & Brown, Inc. Price, Consensus and EPS Surprise | Brown & Brown, Inc. Quote
The quarter witnessed noticeable organic revenue growth across all divisions, partially offset by a rise in expenses. Nonetheless, the company saw an increase in Commissions and fees segment in the reported quarter.
2017 Highlights
Adjusted earnings per share of $1.92 beat the Zacks Consensus Estimate by 2.1%.
Revenues came in at $1.9 billion, up 6.5% year over year.
Behind the Headlines
Total revenues amounted to $474.3 million, edging past the Zacks Consensus Estimate of $447 million by approximately 6.1%. Also, the top line improved 9.4% year over year riding on higher Commissions and fees plus net investment income. Organic revenue growth was 9.3% in the reported quarter.
Commissions and fees rose 9.3% year over year to $473.4 million.
Investment income soared 66.7% year over year to $0.5 million.
Total expenses increased nearly 8.7% to $368.0 million, driven by a rise in employee compensation and benefits, other operating expenses as well as depreciation.
Net income before interest, income taxes, depreciation, amortization and change in estimated acquisition earn-out payables (EBITDAC) margin contracted 70 basis points to 30.2%.
Financial Update
Brown & Brown exited the fourth quarter with cash and cash equivalents of $573.4 million, up nearly 11.2% from the 2016-end level.
Long-term debt of $856.1 million as of Dec 31, 2017 was down 15.9% from $1.0184 billion at the end of 2016.
Dividend Update
In the fourth quarter, this Zacks Rank #1 (Strong Buy) company’s board of directors announced a quarterly dividend of 15 cents per share.
On Jan 19, 2018, the company’s board approved a quarterly cash dividend of 15 cents per share, reflecting an 11.1% hike from the earlier payout of 13.5 cents. Notably, this dividend raise marks the 25th consecutive year of the same and will be rewarded to the shareholders of record as of Feb 2, 2018 on Feb 14.
Insurance Stocks Worth a Look
MGIC Investment Corporation (MTG - Free Report) reported fourth-quarter 2017 operating net income per share of 43 cents, which surpassed the Zacks Consensus Estimate of 27 cents by 59.3%.
American Financial Group, Inc. (AFG - Free Report) provides property and casualty insurance products in the United States. The company, set to release fourth-quarter results on Jan 31, has an Earnings ESP of +1.21% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial Corporation (CNA - Free Report) provides commercial property and casualty insurance products primarily in the United States. The company is expected to announce fourth-quarter results on Feb 5. The stock has an Earnings ESP of +2.75% and a Zacks Rank of 1.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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