NYSE$BRO

Brown & Brown Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported quarterly revenues increased by 12.8% and diluted net income per share increased.

Brown & Brown, Inc. announced its financial results for the first quarter of 2020, with revenues increasing by 12.8% to $698.5 million and diluted net income per share increasing to $0.54.

  • Revenues for the first quarter of 2020 were $698.5 million, an increase of 12.8% compared to the first quarter of the prior year.
  • Commissions and fees increased by 12.8% and Organic Revenue increased by 5.6%.
  • Net income was $152.4 million, increasing by 33.8% compared to the first quarter of the prior year.
  • Diluted net income per share increased to $0.54, or 35.0%, each as compared to the first quarter of the prior year.

Headline financials

Total Revenue

$698M

Previous: $619M+12.8%
EPS (adj)

$0.51

Previous: $0.41+24.4%
Organic Revenue Growth

5.6%

Previous: 5.6%+0.0%
Capital Expenditures

-$16.5M

Previous: -$23.2M+29.0%
Free Cash Flow

$136M

Previous: $90.7M+49.9%
Net Income

$152M

Previous: $114M+33.8%
Operating Income

$205M

Previous: $149M+38.2%
Gross Profit

$698M

Previous: $619M+12.8%
Cash & Equivalents

$386M

Previous: $322M+19.6%
Total Assets

$7.58B

Previous: $6.81B+11.4%
Stock-Based Comp

$9.05M

Previous: $13M-30.4%

Revenue & EPS history

Brown & Brown · Revenue · Quarterly

$698M

Q1 2020+12.8%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Brown & Brown · $698M total across 2 segments · Q1 2020

  • Commissions & Fees
    $697M+12.8%
  • Investment & Other
    $1.2M+9.1%

Forward guidance

The Company anticipates borrowing approximately $250 million on its existing revolving line of credit by May 1, 2020. The proceeds are expected to be used in connection with the payment of the purchase price for the previously announced acquisition LP Insurance Services LLC and for additional liquidity to further strengthen the Company’s financial position and balance sheet in the event cash receipts from customers or carrier partners are delayed due to COVID-19.

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

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+6.7%

Q4 2019

Best reaction

-10.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-12.8%-15.0%
Q4 2025-5.8%-9.4%-10.6%
Q3 2025-6.1%-9.1%-8.3%
Q2 2025+0.2%+1.7%-1.7%
Q1 2025-6.0%-3.8%-2.8%
Q4 2024-2.6%-2.9%+8.0%
Q3 2024+1.0%+0.2%+8.9%
Q2 2024+6.0%+7.3%+11.9%
Q1 2024+0.9%-0.9%+10.9%
Q4 2023+5.5%+1.1%+4.0%
Q3 2023+3.8%+0.7%+11.0%
Q2 2023+1.8%-0.9%+2.4%
Q1 2023+2.6%+4.9%+2.8%
Q4 2022-4.9%-6.7%-8.5%
Q3 2022-10.5%-4.7%-4.7%
Q2 2022-0.5%+5.1%+5.5%
Q1 2022-3.0%-8.5%-17.1%
Q4 2021+2.0%+2.0%+1.7%
Q3 2021-3.9%-5.1%-0.2%
Q2 2021+0.8%+0.1%+6.5%
Q1 2021+2.8%+5.3%+2.3%
Q4 2020-3.8%-9.3%+0.6%
Q3 2020-3.2%-6.9%-1.8%
Q2 2020-2.0%+0.2%+0.6%
Q1 2020+2.4%+0.9%+15.0%
Q4 2019+6.7%+7.3%+10.5%
Q3 2019+3.8%+4.6%+5.6%
Q2 2019+2.5%+4.9%+3.9%
Q1 2019+3.3%+3.6%+4.8%
Q4 2018-5.1%-1.2%+4.0%
Q3 2018-2.9%-3.2%-2.0%
Q2 2018-2.4%-1.3%+1.9%
Q1 2018+1.7%+6.9%+7.5%
Q4 2017-0.8%+2.4%+0.0%
Q3 2017-0.8%-0.1%+1.1%
Q2 2017-0.6%+1.8%+1.7%
Q1 2017+2.5%+2.9%+1.3%
Q4 2016-1.3%-1.3%-1.5%
Q3 2016+0.4%-2.4%+13.0%
Q2 2016+3.8%+2.9%+0.9%
Q1 2016-2.9%
Q4 2015+1.1%
Q3 2015-0.6%
Q2 2015-3.8%
Q1 2015-0.4%
Q4 2014-0.8%
Q3 2014-0.9%
Q2 2014+3.9%
Q1 2014-4.0%
Q4 2013-10.2%
Q3 2013-2.0%
Q2 2013-0.5%
Q1 2013-1.2%
Q4 2012+6.0%
Q3 2012-2.2%
Q2 2012-1.9%
Q1 2012+0.6%
Q4 2011+1.3%
Q3 2011-2.1%
Q2 2011+0.9%
Q1 2010+0.0%
Q1 2011+2.6%
Q4 2008-3.1%
Q3 2010+0.3%
Q3 2009+0.3%
Q2 2010+0.9%
Q2 2009+0.9%
Q4 2009+0.9%

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