Arthur J. Gallagher: Q3 Earnings Snapshot
Thursday, Oct 24, 2024 4:31 pm ET
1min read Arthur J. Gallagher & Co. (AJG), a leading global insurance brokerage and risk management company, recently released its third-quarter earnings report. The company's earnings per share (EPS) of $2.26 met Wall Street's expectations, while its adjusted revenue of $2.74 billion fell short of the Street's forecast of $2.75 billion.
Key metrics reported by Arthur J. Gallagher included:
* Revenue - Commissions: $1.57 billion, up 14% year-over-year
* Revenue - Fees: $957.73 million, up 13.2% year-over-year
* Revenue - Brokerage, as adjusted: $2.37 billion, up 11.5% year-over-year
* Revenue Risk Management Segment - Revenues before reimbursements: $368.66 million, up 11.4% year-over-year
* Revenue Brokerage Segment - Contingent revenues: $59.69 million, up 10.7% year-over-year
* Revenue Risk Management Segment - Fees: $360.09 million, up 11.5% year-over-year
* Revenue Risk Management Segment - Reimbursements: $39.20 million, up 2.1% year-over-year
* Contingent revenues: $59.69 million, up 10.7% year-over-year
* Brokerage - Compensation expense ratio: 54.9%, down from 56.1% last year
* Risk Management Segment - Operating expense ratio: 18.2%, down from 19.6% last year
* Risk Management Segment - Compensation expense ratio: 57.9%, down from 60.2% last year
* Brokerage - Operating expense ratio: 14.5%, down from 15.1% last year
Arthur J. Gallagher's stock price reacted positively to the earnings release, climbing 24% in the last 12 months. The company's strong earnings and consistent growth in key metrics indicate a positive outlook for future stock performance. However, investors should closely monitor the company's revenue trends and expense ratios to assess its long-term prospects.
Key metrics reported by Arthur J. Gallagher included:
* Revenue - Commissions: $1.57 billion, up 14% year-over-year
* Revenue - Fees: $957.73 million, up 13.2% year-over-year
* Revenue - Brokerage, as adjusted: $2.37 billion, up 11.5% year-over-year
* Revenue Risk Management Segment - Revenues before reimbursements: $368.66 million, up 11.4% year-over-year
* Revenue Brokerage Segment - Contingent revenues: $59.69 million, up 10.7% year-over-year
* Revenue Risk Management Segment - Fees: $360.09 million, up 11.5% year-over-year
* Revenue Risk Management Segment - Reimbursements: $39.20 million, up 2.1% year-over-year
* Contingent revenues: $59.69 million, up 10.7% year-over-year
* Brokerage - Compensation expense ratio: 54.9%, down from 56.1% last year
* Risk Management Segment - Operating expense ratio: 18.2%, down from 19.6% last year
* Risk Management Segment - Compensation expense ratio: 57.9%, down from 60.2% last year
* Brokerage - Operating expense ratio: 14.5%, down from 15.1% last year
Arthur J. Gallagher's stock price reacted positively to the earnings release, climbing 24% in the last 12 months. The company's strong earnings and consistent growth in key metrics indicate a positive outlook for future stock performance. However, investors should closely monitor the company's revenue trends and expense ratios to assess its long-term prospects.
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