Brown & Brown, Inc. (NYSE: BRO) stock fell over 2.2% on July 24th, 2018 (Source: Google finance) after the company posted mixed result for the second quarter 2018. In the second quarter, the net income grew 11.8% to $73.9 million.
BRO in the second quarter of FY 18 has reported the adjusted earnings per share of 26 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents as per Zacks Investment Research. The company had reported the adjusted revenue growth of 1.5 percent to $473.1 million in the second quarter of FY 18, beating the analysts’ estimates for revenue of $469.7 million.
On January 1, 2018 the company had adopted FASB Accounting Standards Update No. 2014-09. In the second quarter, the impact of the New Revenue Standard was a decrease in total revenues of $27.2 million, a decrease in net income of $12.4 million, and a decrease in diluted net income per share of $0.05.
Meanwhile, BRO’s subsidiary has acquired certain assets of Tricast Holdings, LLC; Tricast, LLC; and PRx Advisors, LLC d/b/a PSRx Advisors (collectively, “Tricast”). Tricast is specialized in providing pharmacy benefit management (PBM) consulting and services to customers throughout the United States, including pricing audits, rebate audits, prescription drug event audits, rejected claims analysis, Medicare eligibility audits, request for proposal (RFP) services for PBM selection, and contract renegotiation services. Tricast has annual revenues of approximately $2.5 million. Further, the Advocator Group, LLC, which is a wholly owned subsidiary of Brown & Brown, Inc., has acquired PDA. PDA has annual revenues of approximately $15,000,000. Furthermore, BRO of Arkansas, Inc., a subsidiary of Brown & Brown, Inc., has acquired substantially all of the assets of Coffman-Standridge Incorporated d/b/a CSI Insurance. It has an annual revenues of approximately $1.5 million, the firm provides property and casualty insurance products and services to customers throughout Arkansas.
Moreover, BRO has recently acquired Health Special Risk, Inc. (HSR). HSR has annual revenues of approximately $6,500,000 and is one of the leading providers of TPA and MGU services for special risk and accident & health insurance.
Additionally, BRO has declared a regular quarterly cash dividend of $0.075 per share. The dividend is payable on August 15, 2018 to shareholders of record on August 8, 2018.