Market Overview

Reduced Earnings Estimates For Arthur J. Gallagher As Barclays Sees Less Organic Sales Growth

Reduced Earnings Estimates For Arthur J. Gallagher As Barclays Sees Less Organic Sales Growth
Related AJG
Earnings Scheduled For July 26, 2018
The Week Ahead: Central Bank Bonanza, AT&T Court Ruling, North Korea Summit

Arthur J Gallagher & Co (NYSE: AJG) webcast an investor meeting Friday.

Following the informal meeting, Barclays analyst Jay Gelb reduced the firm's 2016/2017 EPS estimate from $2.82/$3.10 to $2.76/$3.05. The decision was based on "lower-than-anticipated margin expansion in Brokerage, and slower organic growth in Risk Management," according to Gelb.

Gelb maintains an Overweight rating with a price target of $52.

Gallagher's brokerage organic revenue growth in the second quarter was 2.2 percent and is expected to be approximately 3 percent for fiscal year 2016 as a whole, according to Barclays.

Related Link: Arthur J. Gallagher Reports Purchase Of Victory Insurance Agency, No Terms Disclosed

Gallagher expressed anticipation of organic revenue growth to recover in the second half of 2016 following the disappointing second quarter.

"AJ Gallagher can expand margins in Brokerage if organic revenue growth exceeds 3 percent," stated Gelb. "The company currently appears more focused on growth than margin expansion."

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for AJG

Aug 2018Credit SuisseInitiates Coverage OnOutperform
Jun 2018Goldman SachsInitiates Coverage OnBuy
Apr 2018CitigroupMaintainsNeutralNeutral

View More Analyst Ratings for AJG
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas News Guidance Price Target Reiteration Analyst Ratings Trading Ideas


Related Articles (AJG)

View Comments and Join the Discussion!

Spectra Energy Merger With Enbridge Seen Favorably By Argus

USD/JPY Extends Losses