Insurance brokerage firm Arthur J. Gallagher (NYSE: AJG) will be announcing earnings results this Thursday after market hours. Here’s what to look for.
Arthur J. Gallagher met analysts’ revenue expectations last quarter, reporting revenues of $4.75 billion, up 27.7% 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 25% year on year, improving from the 15.9% 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 will 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 Q2 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 1.7%, and Brown & Brown reported revenues up 30.4%, falling short of estimates by 2.5%. Marsh traded down 3.4% following the results while Brown & Brown was up 8.7%.
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 5.1% on average over the last month. Arthur J. Gallagher is up 16.8% during the same time and is heading into earnings with an average analyst price target of $281.39 (compared to the current share price of $265.30).
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