Yahoo Finance

Arthur J. Gallagher (AJG) reported $2.39 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 19.9%. EPS of $1.85 for the same period compares to $1.54 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.37 billion, representing a surprise of +1.10%. The company delivered an EPS surprise of +1.09%, with the consensus EPS estimate being $1.83.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Brokerage - Compensation expense ratio: 57.4% compared to the 56.1% average estimate based on three analysts.

• Risk Management Segment - Operating expense ratio: 18.4% versus the three-analyst average estimate of 19.1%.

• Risk Management Segment - Compensation expense ratio: 61% versus 55.3% estimated by three analysts on average.

• Brokerage - Operating expense ratio: 16.3% versus 15.7% estimated by three analysts on average.

• Revenue- Commissions: $1.33 billion versus $1.37 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +15% change.

• Revenue- Fees: $802.40 million versus $771.27 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +22.6% change.

• Revenue Risk Management Segment- Revenues before reimbursements: $340.40 million versus the four-analyst average estimate of $336.69 million. The reported number represents a year-over-year change of +17.1%.

• Revenue Risk Management Segment- Fees: $331.60 million compared to the $332.41 million average estimate based on three analysts. The reported number represents a change of +14.7% year over year.

• Revenue Brokerage Segment- Contingent revenues: $55.40 million versus $49.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +37.8% change.

• Revenue Brokerage Segment- Supplemental revenues: $90.60 million versus the three-analyst average estimate of $83.39 million. The reported number represents a year-over-year change of +13.3%.

• Total revenue- Brokerage: $2.05 billion versus $2.01 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +20.4% change.

• Revenue Risk Management Segment- Reimbursements: $38.80 million versus $35.67 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +17.2% change.