Goosehead (GSHD) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Core Insights - Goosehead Insurance (GSHD) reported revenue of $78.09 million for the quarter ended June 2024, marking a year-over-year increase of 12.7% and an EPS of $0.42 compared to $0.41 a year ago [1] Financial Performance - The reported revenue exceeded the Zacks Consensus Estimate of $74.11 million, resulting in a surprise of +5.36% [4] - The company achieved an EPS surprise of +5.00%, with the consensus EPS estimate being $0.40 [4] Key Metrics - Total Core Revenue was $73.41 million, surpassing the average estimate of $69.48 million based on four analysts, representing a year-over-year change of +20.3% [6] - Cost Recovery Revenue from Initial Franchise Fees was $1.63 million, below the average estimate of $2.94 million, reflecting a year-over-year decline of -50.4% [6] - Total Ancillary Revenue reached $2.81 million, exceeding the average estimate of $1.49 million, but showing a year-over-year decrease of -38.3% [6] - Core Revenue from New Business Royalty Fees was $7.17 million, above the average estimate of $6.56 million, indicating a year-over-year increase of +14.4% [6] - Core Revenue from Agency Fees was $2.14 million, below the estimated $2.53 million, representing a year-over-year decline of -11.1% [6] - Ancillary Revenue from Contingent Commissions was $2.21 million, exceeding the average estimate of $1.14 million, but showing a year-over-year decrease of -44.4% [6] - Core Revenue from Renewal Commissions was $20.59 million, slightly above the average estimate of $20.03 million, reflecting a year-over-year increase of +11.1% [6] - Total Cost Recovery Revenue was $1.88 million, below the average estimate of $3.29 million, indicating a year-over-year decline of -49.4% [6] - Core Revenue from New Business Commissions was $6.68 million, slightly below the average estimate of $6.69 million, showing a year-over-year increase of +6.8% [6] - Core Revenue from Renewal Royalty Fees was $36.83 million, exceeding the average estimate of $33.37 million, representing a year-over-year increase of +33.7% [6] - Cost Recovery Revenue from Interest Income was $0.24 million, below the average estimate of $0.27 million, reflecting a year-over-year decline of -41.5% [6] Stock Performance - Goosehead shares have returned +21.9% over the past month, significantly outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]