Brown & Brown Stock Gains Pre-market After Upbeat Q4 Earnings: Retail Sentiment Brightens

Brown & Brown Inc. (BRO) shares rose 2% in premarket trade on Tuesday after the insurance brokerage firm topped Wall Street estimates for quarterly profit.

On Monday, it reported adjusted earnings of $0.86 per share for the fourth quarter, beating a Wall Street estimate of $0.77 per share, according to Koyfin data.

Its organic revenue rose 13.8% to $1.08 billion, benefiting from increased commissions and fees.

The company said consumers spent more during the fourth quarter despite higher inflation and interest rates.

“Business leaders seem to be cautiously optimistic about the economic outlook,” the company said.

Organic revenue in its national programs segment grew by 38.6% during the fourth quarter, followed by a 7.1% rise in wholesale brokerage and a 4.4% lift in the retail segment.

Brown & Brown and its peers are intermediaries between customers and insurance companies. They help their clients compare the policies of different insurance companies and find the most suitable one for them.

The company added that it has a strong balance sheet and is positioned well to buy more high-quality businesses.

Brown & Brown also said it is monitoring the impacts of the California wildfires.

Retail sentiment on Stocktwits rose to ‘bullish’ (67/100) territory from ‘neutral’(53/100) a day ago, while retail chatter remained ‘extremely high.’

Users were largely pleased with the earnings and expressed their appreciation for the company.

Peers Marsh McLennan and Aon are scheduled to report their earnings on Jan. 30 and Jan. 31, respectively.

Over the past year, BRO stock has gained nearly 40%.

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