AJG Earnings Prediction
The chart below shows how AJG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AJG sees a -1.23% change in stock price 10 days leading up to the earnings, and a +3.87% change 10 days following the report. On the earnings day itself, the stock moves by +0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
AJG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.72B
11.68%
-3.24%
Gross Margin
37.86%
2.57%
-1.53%
Operating Margin
21.79%
23.60%
0.41%
Net Margin
9.51%
683.44%
-15.01%
EPS
1.12
846.67%
-20.00%
No Data Available
AJG Earnings Analysis
Arthur J Gallagher & Co Corporation (AJG.N) Earnings Conference Call
Positive
Consistent Revenue Growth: 12% growth in revenue for combined Brokerage and Risk Management segments, marking the 16th consecutive quarter of double-digit revenue growth.
Organic and EBITDA Growth: 7% organic growth reported, with adjusted EBITDA growth of 17% and adjusted EBITDA margin of 31.4%, up 145 basis points year over year.
Brokerage Revenue Growth: Brokerage segment reported revenue growth of 12%, with organic growth at 7.1% and adjusted EBITDAC margin expanding 168 basis points to 33.1%.
Tuck-In Mergers Impact: Completed 20 new tuck-in mergers representing around $200 million of estimated annualized revenue, bringing the full year total to $387 million.
2024 Financial Performance Growth: Full year 2024 financial performance showed 15% growth in revenue, 7.6% organic growth, and 18% growth in adjusted EBITDA.
Negative
Contingent Shortfall Impact: Reported contingents decreased, resulting in a $7 million shortfall compared to expectations, impacting overall organic growth in the brokerage segment.
Risk Management Growth Shortfall: The Risk Management segment's organic growth of 6% fell short of October expectations, attributed to lower construction consulting revenues in the Northeast.
Brokerage Segment Margin Decline: Adjusted EBITDAC margin for the brokerage segment was reported at 32.5% after adjusting for $20 million in interest income, indicating a decline from the previously expected margin expansion.
Organic Growth Decline: The Canadian operations experienced a decline of a couple of percent in organic growth due to lower contingents, highlighting regional weaknesses in performance.
Debt Raise Impact on Earnings: The company anticipates a $5 billion debt raise for the Assured Partners acquisition, which introduces additional interest expenses that could pressure future earnings.
