Brown & Brown (NYSE:BRO) Issues Earnings Results

Key Points

• Brown & Brown missed quarterly expectations: The insurance broker reported adjusted EPS of $1.07, below the $1.09 consensus, while revenue of $1.70 billion fell short of the $1.76 billion estimate.
• The company raised its quarterly dividend to $0.18 per share from $0.165, implying an annualized dividend of $0.72 and a 1.0% yield.
• Analyst sentiment remains mixed: Brown & Brown has a consensus “Hold” rating and an average price target of $76, compared with the stock’s reported trading price of $71.44.

Brown & Brown (NYSE:BRO - Get Free Report) released its quarterly earnings data on Monday. The financial services provider reported $1.07 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.02), FiscalAI reports. Brown & Brown had a net margin of 17.75% and a return on equity of 13.17%. The firm had revenue of $1.70 billion for the quarter, compared to the consensus estimate of $1.76 billion.

Brown & Brown Stock Performance

BRO stock traded down $1.53 during midday trading on Monday, hitting $71.44. The company's stock had a trading volume of 5,162,604 shares, compared to its average volume of 2,933,332. The stock's 50-day moving average price is $67.25 and its 200 day moving average price is $65.13. The company has a quick ratio of 2.11, a current ratio of 2.11 and a debt-to-equity ratio of 0.58. Brown & Brown has a 1 year low of $53.81 and a 1 year high of $89.05. The stock has a market cap of $23.90 billion, a price-to-earnings ratio of 22.54, a PEG ratio of 2.27 and a beta of 0.60.

Brown & Brown Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 11th. Investors of record on Wednesday, November 4th will be issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.0%. This is an increase from Brown & Brown's previous quarterly dividend of $0.1650. The ex-dividend date is Wednesday, November 4th. Brown & Brown's dividend payout ratio is 20.82%.

Analysts Set New Price Targets

A number of analysts have commented on BRO shares. Weiss Ratings upgraded shares of Brown & Brown from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday. TD Cowen initiated coverage on shares of Brown & Brown in a report on Monday, October 12th. They set a "buy" rating and a $82.00 price objective on the stock. Jefferies Financial Group reaffirmed a "hold" rating on shares of Brown & Brown in a research note on Wednesday, July 29th. Oppenheimer assumed coverage on shares of Brown & Brown in a report on Wednesday, October 7th. They set an "outperform" rating and a $73.00 price objective for the company. Finally, JPMorgan Chase & Co. boosted their target price on shares of Brown & Brown from $80.00 to $83.00 and gave the stock a "neutral" rating in a research report on Thursday, October 1st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Brown & Brown has a consensus rating of "Hold" and an average price target of $76.00.

Brown & Brown Company Profile

Brown & Brown, Inc is an insurance brokerage and risk management company headquartered in Daytona Beach, Florida. The company helps businesses, public entities, individuals and other organizations identify, manage and transfer risk by arranging insurance coverage and providing related advisory services.

Its operations include retail insurance brokerage, national programs, wholesale brokerage and services. Brown & Brown offers property and casualty insurance, employee benefits, personal insurance, surety and other specialized coverage.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.