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What's in Store for Arthur J. Gallagher's (AJG) Q1 Earnings?
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Arthur J. Gallagher & Co. (AJG - Free Report) is slated to report first-quarter 2020 results on Apr 30, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.1 billion, suggesting an improvement of 5.8% from the prior-year quarter.
The same for earnings per share is pegged at $1.75, indicating growth of 7.4% from the year-ago reported figure.
Key Factors to Note
Arthur J. Gallagher’s first-quarter performance is likely to have benefited from higher revenues, which is likely to have been driven by improved commissions and fees. Notably, the Zacks Consensus Estimate for first-quarter commissions is pegged at $1.1 billion, indicating growth of 13.5% from the prior-year reported figure. Also, the consensus estimates for first-quarter fees is pegged at $500 million, suggesting an improvement of 7.5% from the year-ago quarter.
Moreover, Arthur J. Gallagher’s first-quarter results are likely to reflect strong revenues in Brokerage and Risk Management segments. The Zacks Consensus Estimate for first-quarter 2020 revenues at Brokerage segment is pegged at $1.5 billion, indicating growth of 10.3% from the prior-year quarter. Further, the consensus mark for Risk Management segment’s revenues is pegged at $250 million, suggesting growth of 5.8% from the prior-year reported figure.
However, the company’s Corporate segment is likely to reflect softer revenues in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter revenues at this segment is pegged at $338 million, which indicates a decline of 9.2% from the year-ago quarter.
Nevertheless, strong international operations riding on several non-U.S. buyouts are likely to have driven Arthur J. Gallagher’s performance. Improved operational excellence is likely to have contributed to the company’s first-quarter performance.
Increased expenses related to compensation, reimbursements, interest, amortization and depreciation are likely to have impacted the first-quarter performance.
The company has a trailing four-quarter positive earnings surprise of 4.12%, on average.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -2.78%. This is because the Most Accurate Estimate of $1.70 is pegged lower than the Zacks Consensus Estimate of $1.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some stocks worth considering from the insurance space with a right combination to surpass estimates in the upcoming quarterly releases are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on May 5.
Marsh & McLennan Companies, Inc. (MMC - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
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What's in Store for Arthur J. Gallagher's (AJG) Q1 Earnings?
Arthur J. Gallagher & Co. (AJG - Free Report) is slated to report first-quarter 2020 results on Apr 30, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.1 billion, suggesting an improvement of 5.8% from the prior-year quarter.
The same for earnings per share is pegged at $1.75, indicating growth of 7.4% from the year-ago reported figure.
Key Factors to Note
Arthur J. Gallagher’s first-quarter performance is likely to have benefited from higher revenues, which is likely to have been driven by improved commissions and fees. Notably, the Zacks Consensus Estimate for first-quarter commissions is pegged at $1.1 billion, indicating growth of 13.5% from the prior-year reported figure. Also, the consensus estimates for first-quarter fees is pegged at $500 million, suggesting an improvement of 7.5% from the year-ago quarter.
Moreover, Arthur J. Gallagher’s first-quarter results are likely to reflect strong revenues in Brokerage and Risk Management segments. The Zacks Consensus Estimate for first-quarter 2020 revenues at Brokerage segment is pegged at $1.5 billion, indicating growth of 10.3% from the prior-year quarter. Further, the consensus mark for Risk Management segment’s revenues is pegged at $250 million, suggesting growth of 5.8% from the prior-year reported figure.
However, the company’s Corporate segment is likely to reflect softer revenues in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter revenues at this segment is pegged at $338 million, which indicates a decline of 9.2% from the year-ago quarter.
Nevertheless, strong international operations riding on several non-U.S. buyouts are likely to have driven Arthur J. Gallagher’s performance. Improved operational excellence is likely to have contributed to the company’s first-quarter performance.
Increased expenses related to compensation, reimbursements, interest, amortization and depreciation are likely to have impacted the first-quarter performance.
Arthur J. Gallagher & Co. Price and EPS Surprise
Arthur J. Gallagher & Co. price-eps-surprise | Arthur J. Gallagher & Co. Quote
Earnings Surprise History
The company has a trailing four-quarter positive earnings surprise of 4.12%, on average.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Earnings ESP: Arthur J. Gallagher has an Earnings ESP of -2.78%. This is because the Most Accurate Estimate of $1.70 is pegged lower than the Zacks Consensus Estimate of $1.75. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Arthur J. Gallagher carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the insurance space with a right combination to surpass estimates in the upcoming quarterly releases are as follows:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on May 5.
Marsh & McLennan Companies, Inc. (MMC - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>