Brown & Brown Gains 17.6% as Q4 Revenues Outshine Estimates

Shares of Brown & Brown, Inc. (NYSE: BRO) gained 17.6% in the extended trading session on Monday after the company reported significantly higher-than-expected revenues for the fourth quarter of 2021.

Revenues increased 15% year-over-year to $738.5 million, way above the Street’s estimate of $315.58 million.

Adjusted earnings grew 31.3% to $0.42 per share but missed analysts’ expectations of $0.47 per share.

Earnings before interest, taxes, depreciation, amortization, and coronavirus (EBITDAC) rose 24% to $215.7 million, and pre-tax income jumped 7.6% to $140.8 million.

The President and CEO of Brown & Brown, J. Powell Brown, said, “The fourth quarter was another strong performance for the team and is a capstone for a great 2021. I want to thank all of our outstanding teammates for winning more new business and retaining our great customers.”

About Brown & Brown

Headquartered in Florida, Brown & Brown provides insurance and reinsurance products as well as federal programs to general business, corporate, governmental, quasi-governmental, institutional, professional, trade association, and individual clients.

Wall Street’s Take

Following the release of the results, Wells Fargo (NYSE: WFC) analyst Elyse Greenspan maintained a Hold rating on the stock with a price target of $66 (2.2% upside potential).

Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The average Brown & Brown stock price prediction of $71.17 implies 10.2% upside potential. Shares have gained 42.5% over the past year.

Investors’ Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Brown & Brown with 7% of investors on TipRanks increasing their exposure to the stock over the past 30 days.

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