Brown & Brown(US:BRO) ZACKSยท2025-07-23 14:51Core Insights - Brown & Brown, Inc. (BRO) is anticipated to show improvements in both revenue and earnings for the second quarter of 2025, with revenue expected to reach $1.28 billion, reflecting an 8.3% increase year-over-year [1] - The consensus estimate for earnings per share is set at 99 cents, indicating a 6.4% year-over-year growth, although this estimate has decreased by 1.9% in the last 30 days [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for BRO's second-quarter revenues is $1.28 billion, which is an 8.3% growth from the previous year [1] - The expected earnings per share is 99 cents, which shows a year-over-year increase of 6.4% [2] Earnings Prediction Model - The current Earnings ESP for BRO is -3.76%, indicating that the most accurate estimate of 95 cents is lower than the consensus estimate of 99 cents, suggesting a lack of conclusive evidence for an earnings beat [3] - BRO holds a Zacks Rank of 2, indicating a "Buy" recommendation [4] Factors Influencing Q2 Results - Core commissions and fees are expected to benefit from net new and renewal business, with estimates pegged at $1.2 billion [5] - Profit-sharing contingent commissions are projected to increase to $59.8 million, significantly higher than the Zacks Consensus Estimate of $41.2 million, due to improved underwriting results and business growth [6] - Net investment income is expected to reach $22.9 million, benefiting from higher average interest rates and cash balances, compared to the Zacks Consensus Estimate of $18.5 million [7] Segment Performance - Organic revenues in the Retail segment are expected to be $614.9 million, driven by net new business and renewals [7] - Organic revenues in the Wholesale Brokerage segment are anticipated to be $163.7 million, supported by net new business and exposure unit increases [8] - Total expenses are projected to rise to $960.8 million due to increased employee compensation, operating expenses, and other costs [8]