Insurance brokerage Brown & Brown's Q3 revenue misses estimates

Overview

• Insurance brokerage's Q3 revenue rose 7.4% yr/yr but missed analyst expectations

• Adjusted EPS for Q3 rose 1.9% but missed analyst expectations

• Company's organic revenue grew 1.2% amid challenging rate environment

Outlook

• Company did not provide specific financial guidance for future quarters or full year in the press release

Result Drivers

• CUSTOMER WINS - Co said efforts to win more customers helped drive results despite challenging rate environment, per CEO J. Powell Brown

• ACQUISITION IMPACT - Addition of 5,000 teammates from Accession enhanced co's capabilities, per CEO

• MODEST ORGANIC GROWTH - Organic revenue grew 1.2% and organic revenue with contingents grew 1.5%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the multiline insurance & brokers peer group is "hold"

• Wall Street's median 12-month price target for Brown & Brown Inc is $74.50, about 4.8% above its October 26 closing price of $71.08

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)