Arthur J. Gallagher (AJG) Reports Q1 Earnings: What Key Metrics Have to Say

For the quarter ended March 2025, Arthur J. Gallagher (AJG) reported revenue of $3.68 billion, up 14.4% over the same period last year. EPS came in at $3.67, compared to $3.49 in the year-ago quarter.The reported revenue represents a surprise of -1.75% over the Zacks Consensus Estimate of $3.75 billion. With the consensus EPS estimate being $3.57, the EPS surprise was +2.80%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.Here is how Arthur J. Gallagher performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Brokerage - Compensation expense ratio: 48.8% compared to the 47.8% average estimate based on two analysts. Risk Management Segment - Operating expense ratio: 19% versus 19.2% estimated by two analysts on average. Risk Management Segment - Compensation expense ratio: 61.9% compared to the 56.9% average estimate based on two analysts. Brokerage - Operating expense ratio: 10.5% versus the two-analyst average estimate of 10.7%. Revenues- Total Company- Commissions: $2.25 billion versus $2.27 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.8% change. Revenues- Risk Management Segment- Revenues before reimbursements: $373.40 million versus the three-analyst average estimate of $382.24 million. The reported number represents a year-over-year change of +5.8%. Revenues- Total Company- Fees: $984.80 million compared to the $1.06 billion average estimate based on three analysts. The reported number represents a change of +3.5% year over year. Revenues- Brokerage Segment- Commissions: $2.25 billion versus the two-analyst average estimate of $2.26 billion. The reported number represents a year-over-year change of +12.8%. Revenues- Brokerage Segment- Fees: $620.20 million compared to the $709.07 million average estimate based on two analysts. The reported number represents a change of +2.2% year over year. Revenues- Brokerage Segment- Supplemental revenues: $113.90 million versus $96.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.3% change. Revenues- Brokerage Segment- Contingent revenues: $92.90 million versus $91.80 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8% change. Revenues- Brokerage Segment- Interest income, premium finance revenues and other income: $238.40 million versus $231.70 million estimated by two analysts on average. View all Key Company Metrics for Arthur J. Gallagher here>>>Shares of Arthur J. Gallagher have returned -6.8% over the past month versus the Zacks S&P 500 composite's -0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks