Arthur J. Gallagher (AJG) To Report Q1 Earnings: What's Up?
Zacks Investment Research | Apr 21, 2019 10:52PM ET
Arthur J. Gallagher & Co. (NYSE:AJG) is slated to report first-quarter 2019 results on Apr 25, after market close. The company delivered positive earnings surprise in three of the last four quarters.
Let’s see how things are shaping up for this announcement.
Performance of Brokerage and Risk Management segments is likely to improve, driving overall performance in the to-be reported quarter. Organic sales as well as strategic mergers and acquisitions are expected aid performance. The Zacks Consensus Estimate for revenues is pegged at $1.95 billion, indicating an increase of 6.2% from the year-ago reported figure.
The Zacks Consensus Estimate for commissions and fees is pegged at $592 million, implying an increase of 18.4% from the year-ago reported figure.
The company expects stronger organic growth at its Brokerage segment. An expected increase in fees, commissions and supplemental plus contingent revenues are likely to aid the upside.
The Risk Management segment is expected to record growth and better margins in the to-be-reported quarter, boosted by a diversified product portfolio.
An improved interest rate environment is likely to boost net investment income.
Expenses are likely to increase due to higher compensation and operating expenses.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.60 per share, suggesting an increase of 6.2% from the year-ago period reported figure.
What Our Quantitative Model Says
Our proven model does not conclusively show that Arthur J. Gallagher is likely to beat estimates this reporting cycle. This is because the stock does not have the right combination of a positive Zacks Investment Research
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