Earnings Outlook For Brown & Brown


On Monday, April 26, Brown & Brown BRO will release its latest earnings report. Benzinga's outlook for Brown & Brown is included in the following report.

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

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect Brown & Brown's EPS to be near $0.58 on sales of $755.81 million. Brown & Brown EPS in the same period a year ago totaled $0.51. Sales were $698.50 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 13.73%. Revenue would be have grown 8.2% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.29 0.43 0.28 0.46
EPS Actual 0.32 0.52 0.34 0.51
Revenue Estimate 623.34 M 640.89 M 571.78 M 681.74 M
Revenue Actual 642.10 M 674.00 M 598.80 M 698.50 M

Stock Performance

Over the last 52-week period, shares are up 40.46%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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: EarningsBZI-EP
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