NYSE$AJG
Arthur J.Gallagher & Co · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Arthur J. Gallagher reported first quarter results, showing resilience despite the economic impact of COVID-19 and strategic expense management.
Arthur J. Gallagher & Co. announced its first quarter 2020 financial results, demonstrating a solid financial and operational condition despite the economic challenges posed by COVID-19. The company reported revenue of $1,829.2 million and earnings per share of $1.79.
- Brokerage and Risk Management revenues grew both organically and through mergers and acquisitions.
- Company optimized its workforce and utilized centers of excellence to improve productivity.
- Expense-base adjustments are being implemented to mitigate the impact of deteriorating economic conditions.
- Insurance premium rates continue to increase mid-to-high single digits.
Headline financials
Revenue & EPS history
Arthur J. Gallagher · Revenue · Quarterly
$1.87B
Revenue by segment
Arthur J. Gallagher · $1.65B total across 2 segments · Q1 2020
- Brokerage$1.44B—87.1%
- Risk Management$212M—12.9%
Forward guidance
While the company is encouraged by the business's resilience in April, they are balancing that with the expectation that deteriorating economic conditions will likely impact future financial performance, leading to expense-base adjustments.
Tailwinds
- Our teams have not missed a step; all the while placing health and safety first.
- We are servicing our clients, we are selling new business, we continue to look at merger and acquisition opportunities
- Our bedrock culture keeps our teams working together in these challenging times.
- We continued our disciplined processes to optimize our workforce and utilize our centers of excellence, and we improved productivity and raised our quality.
- Our first quarter financial results reflect our best estimate of the accounting impact of the COVID-19 crisis, but still show our solid financial and operational condition and we have ample liquidity.
Headwinds
- Deteriorating economic conditions will likely impact our future financial performance.
- We are taking appropriate measures to make expense-base adjustments in a staged, contemplative manner over the coming months.
- Loss conditions could deteriorate over the next year or so leading to a difficult rate and conditions environment in certain lines.
- We do expect to see declining client exposure units (i.e., insured values, payrolls, employees, miles driven, etc.), which will impact our ultimate revenues.
- In our Risk Management operations we have already seen a meaningful decline in new claims arising from retail, hospitality, restaurant and transportation clients during the last two weeks of March, which has persisted into April, and could continue into future quarters.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+0.6%
Avg return
Earnings day
+1.1%
Avg return
5 days after
+3.1%
Avg return
30 days after
53%
36 / 68 earnings
Positive
+8.2%
Q4 2017
Best reaction
-4.6%
Q1 2014
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.7% | -4.6% | -2.6% | |
| Q4 2025 | -3.3% | +1.5% | -7.2% | |
| Q3 2025 | -0.7% | -6.7% | -11.6% | |
| Q2 2025 | +0.0% | +2.0% | +6.5% | |
| Q1 2025 | +4.1% | +6.9% | +9.4% | |
| Q3 2024 | -2.1% | -1.3% | +5.3% | |
| Q2 2024 | +3.4% | +3.9% | +4.9% | |
| Q1 2024 | -1.1% | -0.9% | +6.4% | |
| Q4 2023 | -2.5% | -3.6% | +2.5% | |
| Q3 2023 | -1.2% | +1.9% | +9.4% | |
| Q2 2023 | -1.6% | -0.2% | +3.6% | |
| Q1 2023 | +1.3% | +2.3% | -0.8% | |
| Q4 2022 | -1.7% | -0.7% | -6.3% | |
| Q3 2022 | +7.2% | +6.5% | +13.3% | |
| Q2 2022 | +3.3% | -0.6% | +8.3% | |
| Q1 2022 | -3.9% | -5.6% | -5.6% | |
| Q4 2021 | +0.9% | +2.4% | +4.0% | |
| Q3 2021 | +3.4% | +0.5% | +0.6% | |
| Q2 2021 | +1.3% | +0.8% | +4.5% | |
| Q1 2021 | +3.5% | +3.9% | +4.7% | |
| Q4 2020 | +2.0% | +4.0% | +5.9% | |
| Q3 2020 | -0.6% | +3.5% | +11.1% | |
| Q2 2020 | +2.6% | +0.6% | +0.2% | |
| Q1 2020 | -2.7% | +4.3% | +18.3% | |
| Q4 2019 | +3.8% | +6.0% | -1.3% | |
| Q3 2019 | -0.8% | -0.2% | +1.8% | |
| Q2 2019 | -0.0% | -0.6% | -4.7% | |
| Q1 2019 | +1.3% | +1.9% | +2.7% | |
| Q4 2018 | +5.5% | +7.6% | +10.2% | |
| Q3 2018 | +3.8% | +4.1% | +7.5% | |
| Q2 2018 | -0.4% | +0.3% | +1.4% | |
| Q1 2018 | -1.9% | -1.5% | -5.3% | |
| Q4 2017 | +8.2% | +6.5% | +5.9% | |
| Q3 2017 | +0.0% | +1.3% | +4.6% | |
| Q2 2017 | +1.3% | +0.9% | -0.5% | |
| Q1 2017 | -1.0% | -2.3% | +1.4% | |
| Q4 2016 | +1.5% | +0.1% | +5.7% | |
| Q3 2016 | -0.4% | -1.8% | +6.9% | |
| Q2 2016 | -0.6% | -1.1% | -1.0% | |
| Q1 2016 | +2.0% | — | — | |
| Q4 2015 | +1.9% | — | — | |
| Q3 2015 | +0.8% | — | — | |
| Q2 2015 | +1.2% | — | — | |
| Q1 2015 | +1.6% | — | — | |
| Q4 2014 | +2.6% | — | — | |
| Q3 2014 | +3.1% | — | — | |
| Q2 2014 | +0.1% | — | — | |
| Q1 2014 | -4.6% | — | — | |
| Q4 2013 | +1.2% | — | — | |
| Q3 2013 | +0.2% | — | — | |
| Q2 2013 | +1.7% | — | — | |
| Q1 2013 | +0.3% | — | — | |
| Q4 2011 | -0.3% | — | — | |
| Q1 2010 | -0.3% | — | — | |
| Q4 2012 | +1.8% | — | — | |
| Q3 2012 | -0.6% | — | — | |
| Q2 2012 | -0.2% | — | — | |
| Q1 2012 | -0.6% | — | — | |
| Q4 2010 | -1.6% | — | — | |
| Q3 2011 | -3.2% | — | — | |
| Q2 2011 | -3.0% | — | — | |
| Q1 2011 | +1.0% | — | — | |
| Q4 2008 | +0.6% | — | — | |
| Q3 2010 | -0.5% | — | — | |
| Q3 2009 | -0.5% | — | — | |
| Q4 2009 | +1.2% | — | — | |
| Q2 2009 | +1.2% | — | — | |
| Q2 2010 | +1.2% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro