Arthur J. Gallagher Q3 Earnings Match Estimates, Revenues Rise Y/Y

Core Insights - Arthur J. Gallagher & Co. reported third-quarter 2024 adjusted net earnings of $2.26 per share, matching the Zacks Consensus Estimate, with a year-over-year increase of 13% [1] - The company's total adjusted revenues reached $2.7 billion, slightly missing the Zacks Consensus Estimate by 0.1%, but showing an 11.1% improvement year over year [2] Operational Update - Total expenses for the quarter increased by 13% year over year to $2.4 billion, driven by higher compensation, operating costs, reimbursements, interest, depreciation, and amortization [2] - Adjusted EBITDAC grew 14.3% from the prior-year quarter to $808.8 million [2] Segmental Results - Brokerage Segment: Revenues increased by 13% year over year to $2.3 billion, with adjusted EBITDAC climbing 16% to $797.7 million and margin expanding by 140 basis points to 33.6% [3] - Risk Management Segment: Revenues rose 11% year over year to $410 million, with adjusted EBITDAC improving 12.7% to $76.9 million and margin expanding by 30 basis points to 20.8% [3] - Corporate Segment: EBITDAC was a negative $65.8 million, compared to a negative $49.1 million in the year-ago quarter [3] Financial Update - As of September 30, 2024, total assets were $57.2 billion, up 10.9% from the end of 2023, and cash and cash equivalents doubled to $2 billion [4] - Shareholders' equity increased by 13% to $12.2 billion from December 31, 2023 [4] Dividend Update - The board of directors approved a quarterly cash dividend of 60 cents per share, payable on December 20 to shareholders of record as of December 6, 2024 [5] Acquisition Update - In the quarter, Arthur J. Gallagher closed three acquisitions with estimated annualized revenues of approximately $32.7 million [6]