Insurance brokerage firm Arthur J. Gallagher (NYSE:AJG) will be reporting results this Thursday after the bell. Here’s what to expect.
Arthur J. Gallagher missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $3.37 billion, up 21.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is Arthur J. Gallagher a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Arthur J. Gallagher’s revenue to grow 34.7% year on year to $3.60 billion, improving from the 12.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arthur J. Gallagher has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Arthur J. Gallagher’s peers in the professional services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Brown & Brown delivered year-on-year revenue growth of 36%, missing analysts’ expectations by 2.2%, and Booz Allen Hamilton reported a revenue decline of 10.2%, falling short of estimates by 3.8%. Brown & Brown traded down 8.4% following the results while Booz Allen Hamilton was also down 1.9%.
Read our full analysis of Brown & Brown’s results here and Booz Allen Hamilton’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 2.2% on average over the last month. Arthur J. Gallagher is down 7.9% during the same time and is heading into earnings with an average analyst price target of $293.56 (compared to the current share price of $242.63).
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