Brown & Brown (NYSE:BRO) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Brown & Brown reported $1.39 EPS, beating estimates by $0.03 while quarterly revenue was $1.90B (slightly below estimates) and rose 35.4% year‑over‑year.
• The stock traded up 0.4% to $66.18, with a market cap of $22.53B and a valuation of P/E 20.68 (12‑month range $63.29–$115.45).
• Analysts have trimmed price targets recently and the consensus rating is Hold with an average price target of $84.27, while institutional investors own about 71% of the shares.

Brown & Brown (NYSE:BRO - Get Free Report) issued its quarterly earnings data on Monday. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.36 by $0.03, FiscalAI reports. Brown & Brown had a net margin of 17.84% and a return on equity of 12.93%. The firm had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.92 billion. During the same period in the previous year, the firm earned $1.29 EPS. Brown & Brown's revenue was up 35.4% on a year-over-year basis.

Brown & Brown Stock Up 0.4%

NYSE:BRO traded up $0.28 during midday trading on Monday, reaching $66.18. The company had a trading volume of 2,929,267 shares, compared to its average volume of 3,264,737. The firm has a market capitalization of $22.53 billion, a price-to-earnings ratio of 20.68, a PEG ratio of 1.80 and a beta of 0.83. The stock's fifty day simple moving average is $68.06 and its 200-day simple moving average is $75.61. Brown & Brown has a 12-month low of $63.29 and a 12-month high of $115.45. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.55.

Analysts Set New Price Targets

BRO has been the subject of a number of recent analyst reports. UBS Group reiterated a "neutral" rating and set a $81.00 price target (down from $90.00) on shares of Brown & Brown in a research report on Thursday, January 29th. The Goldman Sachs Group decreased their price objective on shares of Brown & Brown from $82.00 to $73.00 and set a "neutral" rating on the stock in a report on Wednesday, April 8th. Wells Fargo & Company lowered their price objective on shares of Brown & Brown from $78.00 to $72.00 and set an "equal weight" rating for the company in a research report on Thursday, April 9th. BMO Capital Markets dropped their target price on shares of Brown & Brown from $88.00 to $81.00 and set a "market perform" rating for the company in a report on Thursday, January 29th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Brown & Brown in a research report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $84.27.

Institutional Investors Weigh In On Brown & Brown

Hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC raised its holdings in Brown & Brown by 38.3% in the first quarter. AQR Capital Management LLC now owns 33,444 shares of the financial services provider's stock valued at $4,132,000 after acquiring an additional 9,264 shares in the last quarter. Focus Partners Wealth grew its holdings in Brown & Brown by 5.2% during the 1st quarter. Focus Partners Wealth now owns 11,149 shares of the financial services provider's stock worth $1,387,000 after acquiring an additional 547 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Brown & Brown by 1,824.7% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 53,103 shares of the financial services provider's stock worth $5,888,000 after acquiring an additional 50,344 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of Brown & Brown by 27.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,045 shares of the financial services provider's stock valued at $116,000 after purchasing an additional 223 shares during the last quarter. Finally, Cary Street Partners Financial LLC increased its position in shares of Brown & Brown by 60.9% in the 2nd quarter. Cary Street Partners Financial LLC now owns 933 shares of the financial services provider's stock valued at $103,000 after purchasing an additional 353 shares during the last quarter. Institutional investors and hedge funds own 71.01% of the company's stock.

Brown & Brown Company Profile

Brown & Brown, Inc NYSE: BRO is a professional insurance brokerage and risk advisory firm that provides a broad range of property and casualty, employee benefits, personal risk, and specialty insurance products. The company works with commercial, public sector and individual clients to design and place insurance programs, manage claims and loss control, and deliver risk management consulting. Its services also include wholesale brokerage, program administration and other specialty distribution solutions that connect carriers and intermediaries to niche markets.

Brown & Brown operates through a decentralized model of operating units and subsidiaries, enabling local client service with the scale to access national and specialty markets.