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Brown & Brown Earnings Preview

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Brown & Brown (NYSE: BRO) announces its next round of earnings this Monday, October 26. Here is Benzinga's everything-that-matters guide for this Monday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Brown & Brown modeled for quarterly EPS of $0.43 on revenue of $640.89 million. Brown & Brown earnings in the same period a year ago was $0.39 per share. Quarterly sales came in at $618.70 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 10.26% increase in the company's earnings. Sales would be up 3.59% from the same quarter last year. Brown & Brown's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.28 0.46 0.26 0.38
EPS Actual 0.34 0.51 0.28 0.39
Revenue Estimate 571.78 M 681.74 M 563.56 M 609.98 M
Revenue Actual 598.80 M 698.50 M 579.00 M 618.70 M

Stock Performance

Shares of Brown & Brown were trading at $46.65 as of October 22. Over the last 52-week period, shares are up 30.06%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Brown & Brown is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings