Brown & Brown Inc.
) reported its operating net income of 40 cents per share for the
third quarter of 2013, which missed the Zacks Consensus Estimate
by a penny. However, the results improved 14.7% from 34 cents per
share earned in the year-ago quarter.
After adjusting for acquisition-related expenses of 1 cent per
share, net income came in at 39 cents per share in the reported
quarter, comparing favorably with net income of 34 cents in the
The improvement was primarily driven by solid performance across
four business divisions.
Behind the Headlines
Total revenues of Brown & Brown Inc. amounted to $359.3
million in the third quarter of 2013, surpassing the Zacks
Consensus Estimate of $349 million. The results also improved
18.3% year over year driven by higher commissions and fees.
Among the four business divisions of the company, Wholesale
Brokerage and National Programs exhibited higher organic revenue
growth rates of 15.8% and 14% respectively, whereas organic
growth rates of Services and Retail Divisions were 4.6% and 2.5%
respectively, in the third quarter of 2013.
Total expenses increased 18.8% year over year to $263.9 million.
The magnitude of increase in expenses was higher than that of
revenues, inducing a 30 basis points reduction in pre-tax margin
in the reported quarter.
Brown & Brown Inc. exited the reported quarter with cash and
cash equivalents of approximately $171 million compared with
$219.8 million reported at the end of year ago quarter.
Long term debt of the company stood at $380 million at the end of
third quarter of 2013 improving from $450 million reported at the
end of third quarter of previous year.
Brown & Brown Inc. paid a quarterly cash dividend of 9 cents
per share on Aug 14, 2013 to the shareholders of record as of Aug
Brown & Brown Inc. presently carries a Zacks Rank #3 (Hold).
), carrying a Zacks Rank #2 (Buy), is scheduled to release its
third-quarter results on Oct 24. Among others in the insurance
space, property & casualty insurers
Fidelity National Financial Inc.
) is scheduled to release its third-quarter earnings results on
Oct 16 and Oct 30 respectively. Both these stocks carry a
Zacks Rank #1 (Strong Buy).
BROWN & BROWN (BRO): Free Stock Analysis
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FIDELITY NAT FI (FNF): Free Stock Analysis
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