Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$69.70Last close (Oct 24, 2023)
Post-Earnings Price$70.00Open (Oct 25, 2023)
Price Change
$0.30(+0.43%)
- Brown & Brown is experiencing strong organic growth driven by writing more new business and strong execution across Retail and Wholesale segments.
- The company has a strong M&A pipeline with good acquisition opportunities, allowing for future growth through strategic acquisitions, despite fewer financial buyers in the market.
- The Services segment is showing sustainable growth due to expanded customer relationships and new relationships, indicating recurring revenue opportunities.
- Margin contraction expected in Q4 due to absence of prior year's one-off revenues, specifically the $7 million incentive bonus and $8 million of claims revenue associated with Hurricane Ian.
- Services segment growth may not be sustainable as it was driven by one-time claims processing revenue, and future performance is unpredictable on a quarterly basis.
- Ongoing expense pressures from high cost of talent, inflationary pressures, and stock-based compensation acting as a headwind year-over-year, potentially impacting margins.