Brown & Brown (BRO:NYE), a leading insurance brokerage firm, recently released its fourth-quarter 2022 results and they were better than expected.
The company’s Q4 revenues grew 22.1% year-over-year to $901.4 million, exceeding analysts’ expectations of $898 million. Additionally, adjusted earnings per share (EPS) increased by approximately 28.2% to $0.50, also surpassing the Street’s expectations of $0.46. The company attributed the positive results to higher commissions and fees, solid new business, and strong retention rates.
For the full year 2022, BRO stock reported revenue of $3.57 billion, a 17.1% increase from the previous year. Additionally, adjusted earnings increased by 6.5% to $2.28 per share.
As for the Brown & Brown stock performance, Wells Fargo analyst Elyse Greenspan has reiterated a “Hold” rating on BRO stock with a price target of $60. Greenspan expects the Brown & Brown stock to fall due to slowing retail growth and a significant contribution of flood-related revenue in the quarter.
The Street’s overall sentiment towards the stock is cautiously optimistic, with three Buy recommendations and five Hold recommendations. The average price target of $66.93 implies a 4.5% upside potential from the current level. Despite this, shares of the company have already gained 9.4% in 2023.
