Insurance brokerage firm Arthur J. Gallagher (NYSE: AJG) will be reporting earnings this Thursday after market close. Here’s what you need to know.
Arthur J. Gallagher met analysts’ revenue expectations last quarter, reporting revenues of $3.61 billion, up 34.8% year on year. It was a mixed quarter for the company, with a narrow beat 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, the market is expecting Arthur J. Gallagher’s revenue to grow 28% year on year, improving from the 15.2% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Arthur J. Gallagher’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 2.9%, and Brown & Brown reported revenues up 35.4%, in line with consensus estimates. Marsh’s stock price was unchanged after the resultswhile Brown & Brown was down 4.5%.
Read our full analysis of Marsh’s results here and Brown & Brown’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 13.1% on average over the last month. Arthur J. Gallagher is down 1.6% during the same time and is heading into earnings with an average analyst price target of $271.42 (compared to the current share price of $212.53).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
