Insurance specialty broker Ryan Specialty (NYSE: RYAN) will be announcing earnings results this Thursday after market hours. Here’s what investors should know.
Ryan Specialty missed analysts’ revenue expectations last quarter, reporting revenues of $751.2 million, up 13.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is Ryan Specialty a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ryan Specialty’s revenue to grow 12.8% year on year, slowing from the 25% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Ryan Specialty has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ryan Specialty’s peers in the professional services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 7.6%, beating analysts’ expectations by 2.9%, and Brown & Brown reported revenues up 35.4%, in line with consensus estimates. Marsh’s stock price was unchanged after the resultswhile Brown & Brown was down 4.5%.
Read our full analysis of Marsh’s results here and Brown & Brown’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 13.1% on average over the last month. Ryan Specialty is up 5.4% during the same time and is heading into earnings with an average analyst price target of $48.59 (compared to the current share price of $34.74).
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