Research Desk Line-up: Willis Towers Watson Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 11, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Arthur J. Gallagher & Co. (NYSE: AJG), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AJG, following the Company's announcement of its financial results on July 27, 2017, for the second quarter fiscal 2017. The Company's net income increased 14.6% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Insurance Brokers industry. Pro-TD has currently selected Willis Towers Watson PLC (NASDAQ: WLTW) for due-diligence and potential coverage as the Company announced on August 03, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Willis Towers Watson when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AJG; also brushing on WLTW. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=AJG

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Earnings Reviewed

For three months ended June 30, 2017, Arthur J. Gallagher's revenue increased 9.1% to $1.56 billion on a y-o-y basis from $1.43 billion in Q2 FY16. The revenue surpassed analysts' expectations of $1.5 billion.

During Q2 FY17, the Company's total expenses increased 10.1% to $1.42 billion from $1.29 billion in Q2 FY16. The increase was due to a rise in compensation costs, operating costs, interest expenses, and higher depreciation and amortization expenses. For the reported quarter, Arthur J. Gallagher's earnings from continuing operations before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables (EBITDAC) increased 4.7% to $279.0 million from $266.5 million in Q2 FY16.

For the reported quarter, Arthur J. Gallagher's net income increased 14.6% to $171.9 million on a y-o-y basis from $150.0 million in Q2 FY16. During Q2 FY17, the Company's diluted EPS increased 13.1% to $0.95 on a y-o-y basis from $0.84 in the same quarter last year. For the reported quarter, Arthur J. Gallagher's adjusted diluted EPS increased 7.3% to $1.03 on a y-o-y basis from $0.96 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectation by 1%.

On July 26, 2017, the Company's Board of Directors declared quarterly cash dividend of $0.39 per share on the common stock, payable on September 15, 2017, to stockholders of record as of September 01, 2017.

Arthur J. Gallagher's Segment Details

Brokerage - During Q2 FY17, the Brokerage segment's revenue increased 6.3% to $998.1 million from $939.1 million in Q2 FY16. For the reported quarter, the segment's adjusted revenue increased 8.8% to $997.0 million from $916.6 million in Q2 FY16. For the reported quarter, the segment's adjusted organic revenue increased 4.2% to $941.6 million from $903.8 million in Q2 FY16.

During Q2 FY17, the segment's adjusted EBITDAC increased 10.6% to $309.2 million from $279.6 million in the same quarter last year. For the reported quarter, the segment's adjusted EBITDAC margin increased 50 basis points to 31% of revenue from 30.5% of revenue in Q2 FY16.

For the reported quarter, the Brokerage segment's net income increased 21.4% to $139.5 million from $114.9 million in Q2 FY16. During Q2 FY17, the segment's net income margin increased 180 basis points to 14% of revenue from 12.2% of revenue in Q2 FY16. The segment's diluted EPS increased 18.8% to $0.76 in Q2 FY17 from $0.64 in Q2 FY16. For the reported quarter, the segment's adjusted diluted EPS increased 9.5% to $0.81 from $0.74 in Q2 FY16.

During Q2 FY17, the segment completed 9 tuck-in acquisitions at a weighted average multiple of 7x EBITDAC.

Risk Management - During Q2 FY17, the Risk Management segment's revenue increased 6.9% to $188.7 million from $176.5 million in Q2 FY16. For the reported quarter, the segment's adjusted revenue increased 7.3% to $188.7 million from $175.8 million in Q2 FY16. For the reported quarter, the segment's adjusted organic revenue increased 5.6% to $185.4 million from $175.6 million in Q2 FY16.

During Q2 FY17, the segment's adjusted EBITDAC increased 8.1% to $32.1 million from $29.7 million in the same quarter last year. For the reported quarter, the segment's adjusted EBITDAC margin increased 10 basis points to 17% of revenue from 16.9% of revenue in Q2 FY16.

For the reported quarter, this segment's net income increased 3.6% to $14.4million from $13.9 million in Q2 FY16. During Q2 FY17, the segment's net income margin decreased 30 basis points to 7.6% of revenue from 7.9% of revenue in Q2 FY16. The segment's diluted EPS remained flat at 0.08 and its adjusted diluted EPS was also flat at 0.08 for the reported quarter.

During Q2 FY17, the segment completed 2 acquisitions, 1 in New Zealand and the other in the UK.

Corporate - During Q2 FY17, the Corporate segment's revenue increased 20.9% to $376.6 million, from $311.5 million in Q2 FY16. In Q2 FY17, the segment's EBITDAC was negative $50.7 million compared to negative $30.9 million in Q2 FY16. For the reported quarter, the segment's net income decreased 1.5% to $26.5 million from $26.9 million in Q2 FY16.

Balance Sheet

As on July 01, 2017, Arthur J. Gallagher's cash and cash equivalents increased 7.8% to $587.8 million from $545.5 million in Q4 FY16.

During Q2 FY17, the Company's premiums and fees receivable increased 2.9% to $2.37 billion from $1.84 billion in Q4 FY16.

Stock Performance

At the closing bell, on Thursday, August 10, 2017, Arthur J. Gallagher's stock slightly fell 0.49%, ending the trading session at $58.61. A total volume of 922.79 thousand shares have exchanged hands, which was higher than the 3-month average volume of 794.37 thousand shares. The Company's stock price rallied 6.31% in the last three months, 7.13% in the past six months, and 17.86% in the previous twelve months. Moreover, the stock surged 12.80% since the start of the year. The stock is trading at a PE ratio of 23.63 and has a dividend yield of 2.66%. The stock currently has a market cap of $10.49 billion.

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SOURCE: Pro-Trader Daily