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.
Is a Beat in the Cards for Brown & Brown This Earnings Season?
Read MoreHide Full Article
Key Takeaways
Brown & Brown's Q3 revenues are projected to rise 9.8% to $1.76 billion, with EPS up 2.9% to $1.08.
Brown & Brown's Earnings ESP of 1.62% signals a potential earnings beat when it reports on Oct. 26.
Acquisitions, new business and higher commissions may aid BRO's growth, while rising expenses could weigh.
Brown & Brown, Inc. (BRO - Free Report) is expected to register an improvement in both top and bottom lines when it reports third-quarter 2026 2026 results on Oct. 26, after the closing bell.
The Zacks Consensus Estimate for BRO’s third-quarter revenues is pegged at $1.76 billion, indicating 9.8% growth from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $1.08 per share. The Zacks Consensus Estimate for BRO’s third-quarter earnings has moved south by 0.9% in the past 30 days. The estimate suggests a year-over-year increase of 2.9%.
What the Zacks Model Unveils for BRO
Our proven model predicts an earnings beat for Brown & Brown this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Brown & Brown has an Earnings ESP of +1.62% at present. This is because the Most Accurate Estimate of $1.10 is pegged higher than the Zacks Consensus Estimate of $1.08. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Core commissions and fees are likely to have benefited from net new and renewal business, and acquisitions.
Profit-sharing contingent commissions are expected to have benefited from improved underwriting results at insurance carrier partners, higher premium volumes and favorable carrier contract terms. Recent acquisitions also support growth in contingent commissions.
Net investment income is expected to benefit from interest income earned from the proceeds of the company’s follow-on common stock offering. The Zacks Consensus Estimate is pegged at $23.5 million.
Organic revenues in the Retail segment are likely to have benefited from net new business written over the preceding 12 months and growth in renewals of existing customers. However, slowing rate increases and rate decreases in certain coverage lines could moderate growth.
Net new business and exposure unit increases are expected to have aided organic revenues in the Wholesale Brokerage segment.
Expenses are expected to have increased due to higher employee compensation and benefits, other operating expenses, amortization and depreciation, reflecting the impact of acquisitions and investments in business capabilities.
Other Stocks to Consider
Here are three other insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.99, indicating a year-over-year decrease of 30.2%.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $7.03, indicating a year-over-year decrease of 37.1%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05 per share, indicating a year-over-year decrease of 26%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
View the Zacks #1 Rank List
Image: Bigstock
Is a Beat in the Cards for Brown & Brown This Earnings Season?
Key Takeaways
Brown & Brown, Inc. (BRO - Free Report) is expected to register an improvement in both top and bottom lines when it reports third-quarter 2026 2026 results on Oct. 26, after the closing bell.
The Zacks Consensus Estimate for BRO’s third-quarter revenues is pegged at $1.76 billion, indicating 9.8% growth from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $1.08 per share. The Zacks Consensus Estimate for BRO’s third-quarter earnings has moved south by 0.9% in the past 30 days. The estimate suggests a year-over-year increase of 2.9%.
What the Zacks Model Unveils for BRO
Our proven model predicts an earnings beat for Brown & Brown this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Brown & Brown has an Earnings ESP of +1.62% at present. This is because the Most Accurate Estimate of $1.10 is pegged higher than the Zacks Consensus Estimate of $1.08. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Brown & Brown, Inc. Price and EPS Surprise
Brown & Brown, Inc. price-eps-surprise | Brown & Brown, Inc. Quote
Zacks Rank: Brown & Brown currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape Q3 Results of BRO
Core commissions and fees are likely to have benefited from net new and renewal business, and acquisitions.
Profit-sharing contingent commissions are expected to have benefited from improved underwriting results at insurance carrier partners, higher premium volumes and favorable carrier contract terms. Recent acquisitions also support growth in contingent commissions.
Net investment income is expected to benefit from interest income earned from the proceeds of the company’s follow-on common stock offering. The Zacks Consensus Estimate is pegged at $23.5 million.
Organic revenues in the Retail segment are likely to have benefited from net new business written over the preceding 12 months and growth in renewals of existing customers. However, slowing rate increases and rate decreases in certain coverage lines could moderate growth.
Net new business and exposure unit increases are expected to have aided organic revenues in the Wholesale Brokerage segment.
Expenses are expected to have increased due to higher employee compensation and benefits, other operating expenses, amortization and depreciation, reflecting the impact of acquisitions and investments in business capabilities.
Other Stocks to Consider
Here are three other insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.99, indicating a year-over-year decrease of 30.2%.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $7.03, indicating a year-over-year decrease of 37.1%.
ALL’s earnings beat estimates in each of the last four reported quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05 per share, indicating a year-over-year decrease of 26%.
ACGL’s earnings beat estimates in each of the last four reported quarters.