Yahoo Finance Brown & Brown Inc (BRO) Surpasses Analyst Revenue Forecasts with Strong Q1 Performance
Reported Revenue: $1,258 million, a 12.7% increase year-over-year, surpassing the estimated $1,216.93 million.
Net Income: $293 million, up 24.2% from the previous year, exceeding the estimated $293.76 million.
Earnings Per Share (EPS): Reported at $1.02, just below the estimated $1.05.
Organic Revenue Growth: Recorded at 8.6%, indicating strong underlying business performance.
Income Before Income Taxes: Increased by 23.8% to $364 million, with margin improvement to 28.9% from 26.3%.
EBITDAC - Adjusted: Rose to $466 million, showing a 17.1% increase, with margin expanding to 37.0% from 35.7%.
Quarterly Dividend: Announced at $0.13 per share, payable on May 15, 2024, to shareholders of record as of May 6, 2024.
Brown & Brown Inc (NYSE:BRO) has released its first quarter financial results for 2024, showcasing a robust performance with total revenues reaching $1,258 million, a significant 12.7% increase from the previous year. This figure notably surpasses the analyst's revenue estimate of $1,216.93 million. The detailed earnings data was published in the company's recent 8-K filing on April 22, 2024.
Brown & Brown Inc, a prominent insurance brokerage firm, has demonstrated a commendable financial trajectory, particularly in its core operations of insurance products and brokerage services. The company's primary revenue comes from commissions and fees, which saw an 11.6% increase. Organic revenue, a critical measure of growth excluding acquisitions and other adjustments, rose by 8.6%.
Financial Highlights and Performance Metrics
The company's net income saw a remarkable rise to $293 million, up 24.2% from the previous year, aligning closely with the analyst's net income estimate of $293.76 million. Diluted net income per share increased to $1.02, a 22.9% rise, slightly missing the estimated $1.05 per share. However, the adjusted diluted net income per share stood at $1.14, reflecting adjustments for non-recurring costs and other factors.
EBITDAC (Earnings Before Interest, Taxes, Depreciation, Amortization, and Change in estimated acquisition earn-out payables) also showed strong growth, with the adjusted EBITDAC reaching $466 million, marking a 17.1% increase. This resulted in an EBITDAC margin - adjusted of 37.0%, up from 35.7% in the previous year, indicating improved operational efficiency and profitability.
Strategic Developments and Forward Outlook
J. Powell Brown, President and CEO of Brown & Brown Inc, commented on the results, stating,
Our teammates delivered strong organic revenue growth and margin expansion in the first quarter of 2024. We are very pleased with the start of the year."
This statement underscores the company's robust internal growth and operational improvements.
In addition to its financial achievements, Brown & Brown announced a regular quarterly dividend of $0.13 per share, payable on May 15, 2024, to shareholders of record as of May 6, 2024. This dividend declaration reflects the company's ongoing commitment to delivering shareholder value.
Comprehensive Financial Review
Reviewing the balance sheet, Brown & Brown maintains a strong financial position with total assets of $14,806 million as of March 31, 2024. The company's liabilities and equity also showed a balanced structure, ensuring financial stability and resilience in its operations.
The cash flow statements reveal a net cash provided by operating activities of $13 million, with a net decrease in cash and cash equivalents, including fiduciary cash, of $153 million. This highlights the dynamic nature of cash flows in response to operational and investment activities.
As Brown & Brown Inc continues to navigate through a complex insurance market, its ability to outperform revenue expectations and maintain solid growth in core financial metrics positions it well for sustained success. The company's strategic focus on organic growth and operational efficiency, coupled with its robust financial health, makes it a noteworthy entity in the insurance brokerage sector.
For more detailed financial information and future updates, stakeholders are encouraged to refer to the official filings and communications from Brown & Brown Inc.
# # #For more information: R. Andrew WattsChief Financial Officer(386) 239-5770
Explore the complete 8-K earnings release (here) from Brown & Brown Inc for further details.
This article first appeared on GuruFocus.
