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Wall Street analysts forecast that Arthur J. Gallagher (AJG) will report quarterly earnings of $3.57 per share in its upcoming release, pointing to a year-over-year increase of 2.3%. It is anticipated that revenues will amount to $3.75 billion, exhibiting an increase of 16.5% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 8.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Arthur J. Gallagher metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Revenues- Total Company- Commissions' stands at $2.27 billion. The estimate suggests a change of +14.1% year over year.
Analysts forecast 'Revenues- Risk Management Segment- Revenues before reimbursements' to reach $382.24 million. The estimate indicates a change of +8.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Total Company- Fees' should arrive at $1.06 billion. The estimate points to a change of +11.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Brokerage Segment- Commissions' of $2.26 billion. The estimate points to a change of +13.4% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenues- Brokerage Segment- Fees' should come in at $709.07 million. The estimate suggests a change of +16.9% year over year.
The combined assessment of analysts suggests that 'Revenues- Brokerage Segment- Supplemental revenues' will likely reach $96.15 million. The estimate suggests a change of +2.4% year over year.
The consensus among analysts is that 'Revenues- Brokerage Segment- Contingent revenues' will reach $91.80 million. The estimate indicates a change of +6.7% from the prior-year quarter.