Brown & Brown, Inc. (NYSE:BRO) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Brown & Brown, Inc. (NYSE:BRO) filed its first-quarter result this time last week. The early response was not positive, with shares down 6.4% to US$111 in the past week. Brown & Brown reported in line with analyst predictions, delivering revenues of US$1.4b and statutory earnings per share of US$1.15, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 1 warning sign about Brown & Brown. View them for free.

Taking into account the latest results, the most recent consensus for Brown & Brown from ten analysts is for revenues of US$5.19b in 2025. If met, it would imply a reasonable 6.7% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$3.58, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$5.21b and earnings per share (EPS) of US$3.62 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Brown & Brown

The analysts reconfirmed their price target of US$119, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Brown & Brown at US$130 per share, while the most bearish prices it at US$102. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Brown & Brown's revenue growth is expected to slow, with the forecast 9.0% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.8% per year. Even after the forecast slowdown in growth, it seems obvious that Brown & Brown is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Brown & Brown going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Brown & Brown you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.