Yahoo Finance What Analyst Projections for Key Metrics Reveal About Arthur J. Gallagher (AJG) Q1 Earnings
Analysts on Wall Street project that Arthur J. Gallagher (AJG) will announce quarterly earnings of $3.42 per share in its forthcoming report, representing an increase of 12.9% year over year. Revenues are projected to reach $3.15 billion, increasing 18% from the same quarter last year.
The current level reflects a downward revision of 1.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Arthur J. Gallagher metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Revenue- Commissions' at $2.10 billion. The estimate suggests a change of +20.3% year over year.
Analysts predict that the 'Revenue- Fees' will reach $830.37 million. The estimate indicates a year-over-year change of +17.7%.
Analysts' assessment points toward 'Investment income and net gains on divestitures' reaching $90.60 million. The estimate indicates a year-over-year change of +36.7%.
Based on the collective assessment of analysts, 'Revenue Risk Management Segment- Revenues before reimbursements' should arrive at $341.06 million. The estimate suggests a change of +14.6% year over year.
It is projected by analysts that the 'Total revenue- Brokerage' will reach $2.82 billion. The estimate suggests a change of +18.8% year over year.
Analysts expect 'Revenue Risk Management Segment- Fees' to come in at $338.05 million. The estimate indicates a change of +15.4% from the prior-year quarter.
The consensus among analysts is that 'Revenue Risk Management Segment- Investment income' will reach $6.30 million. The estimate indicates a year-over-year change of +37%.
The combined assessment of analysts suggests that 'Revenue Risk Management Segment- Reimbursements' will likely reach $36.40 million. The estimate indicates a change of +9.6% from the prior-year quarter.
According to the collective judgment of analysts, 'Brokerage - Compensation expense ratio' should come in at 49.7%. Compared to the current estimate, the company reported 50.8% in the same quarter of the previous year.
Analysts forecast 'Risk Management Segment - Operating expense ratio' to reach 18.9%. The estimate compares to the year-ago value of 20.8%.
The collective assessment of analysts points to an estimated 'Risk Management Segment - Compensation expense ratio' of 57.2%. The estimate is in contrast to the year-ago figure of 60.4%.
The consensus estimate for 'Brokerage - Operating expense ratio' stands at 12.1%. The estimate compares to the year-ago value of 12.2%.
View all Key Company Metrics for Arthur J. Gallagher here>>>
Shares of Arthur J. Gallagher have demonstrated returns of -4% over the past month compared to the Zacks S&P 500 composite's -4% change. With a Zacks Rank #3 (Hold), AJG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
