What's In Store For Arthur J. Gallagher (AJG) In Q3 Earnings?
Zacks Investment Research | Oct 21, 2019 10:01PM ET
Arthur J. Gallagher (NYSE:AJG) is set to report third-quarter 2019 earnings on Oct 24 after market close. The company delivered positive surprise in the last four quarters with the average being 3.26%.
Let’s see what’s in store for the company in the soon-to-be reported quarter.
Arthur J. Gallagher’s third-quarter earnings are likely to have benefited from strong performance of Brokerage and Risk Management segments. Better pricing is expected to have contributed as well.
Organic growth, strategic buyouts, solid domestic and international operations are likely to have aided aided fees and commissions. The Zacks Consensus Estimate for fees is currently pegged at $493 million, indicating 8.8% increase from the year-ago period reported figure, while that for commissions is $817 million, indicating 15.4% increase from the year-ago period reported figure.
The domestic and international operations are likely to have contributed to total revenues of the company. The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, indicating 6.1% increase from the year-ago reported figure.
Expenses are likely to have increased due to increase in compensation and operating expenses, well as higher interest expenses. This, in turn, might have restricted margin expansion.
The Zacks Consensus Estimate for third quarter earnings stands at 79 cents, implying nearly 1.28% increase from the year-ago quarter reported figure.
What Our Quantitative Model States
Our proven model does not conclusively predict an earnings beat for Arthur J. Gallagher this time around. The combination of a positive Zacks Investment Research
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