Earnings Outlook For Arthur J. Gallagher
Arthur J. Gallagher (NYSE:AJG) is set to give its latest quarterly earnings report on Thursday, 2025-05-01. Here's what investors need to know before the announcement.
Analysts estimate that Arthur J. Gallagher will report an earnings per share (EPS) of $3.85.
Anticipation surrounds Arthur J. Gallagher's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Past Earnings Performance
During the last quarter, the company reported an EPS beat by $0.10, leading to a 0.93% increase in the share price on the subsequent day.
Here's a look at Arthur J. Gallagher's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.03 | 2.27 | 2.24 | 3.41 |
| EPS Actual | 2.13 | 2.26 | 2.26 | 3.49 |
| Price Change % | 1.0% | -2.0% | 4.0% | -1.0% |
Tracking Arthur J. Gallagher's Stock Performance
Shares of Arthur J. Gallagher were trading at $317.14 as of April 29. Over the last 52-week period, shares are up 31.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Arthur J. Gallagher
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Arthur J. Gallagher.
With 10 analyst ratings, Arthur J. Gallagher has a consensus rating of Neutral. The average one-year price target is $324.1, indicating a potential 2.19% upside.
Peer Ratings Comparison
This comparison focuses on the analyst ratings and average 1-year price targets of Aon, Marsh & McLennan Cos and Brown & Brown, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Aon, with an average 1-year price target of $408.22, suggesting a potential 28.72% upside.
- Analysts currently favor an Neutral trajectory for Marsh & McLennan Cos, with an average 1-year price target of $233.78, suggesting a potential 26.28% downside.
- Analysts currently favor an Neutral trajectory for Brown & Brown, with an average 1-year price target of $119.67, suggesting a potential 62.27% downside.
Analysis Summary for Peers
The peer analysis summary outlines pivotal metrics for Aon, Marsh & McLennan Cos and Brown & Brown, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Arthur J. Gallagher | Neutral | 11.68% | $1.13B | 1.60% |
| Aon | Outperform | 16.19% | $2.48B | 14.70% |
| Marsh & McLennan Cos | Neutral | 9.08% | $3.21B | 10.08% |
| Brown & Brown | Neutral | 11.96% | $702M | 4.94% |
Key Takeaway:
Arthur J. Gallagher ranks in the middle among peers for revenue growth. It is at the bottom for gross profit and return on equity.
All You Need to Know About Arthur J. Gallagher
Founded in 1927 as a one-person agency, Gallagher's primary business is insurance brokerage, with a focus on serving middle-market companies. The company's risk management segment provides third-party claims adjustment to companies that choose to self-insure. Gallagher has about 56,000 employees and generates about a third of its revenue internationally, primarily in Australia, Canada, New Zealand, and the UK.
Breaking Down Arthur J. Gallagher's Financial Performance
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Arthur J. Gallagher's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 11.68%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Arthur J. Gallagher's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.51% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.6%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Arthur J. Gallagher's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.43%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.67.
To track all earnings releases for Arthur J. Gallagher visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.