Insurance specialty broker Ryan Specialty (NYSE:RYAN) will be reporting earnings this Thursday after market hours. Here’s what to look for.
Ryan Specialty beat analysts’ revenue expectations last quarter, reporting revenues of $795.2 million, up 15.2% year on year. It was a very strong quarter for the company, with a beat 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 1.8% year on year, slowing from the 23% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 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 Q2 results, giving us a hint as to what we can expect. Marsh delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 1.7%, and Brown & Brown reported revenues up 30.4%, falling short of estimates by 2.5%. Marsh traded down 3.4% following the results while Brown & Brown was up 8.7%.
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 5.1% on average over the last month. Ryan Specialty is up 18.5% during the same time and is heading into earnings with an average analyst price target of $45.88 (compared to the current share price of $46.36).
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