Why Brown & Brown (BRO) Is Falling Today

NEW YORK (TheStreet) -- Brown & Brown  (BRO) was falling 6.6% to $28.66 Tuesday after the insurance broker missed earnings and revenue estimates in its quarterly earnings report.

For the fourth-quarter, Brown & Brown reported earnings of 32 cents a share, compared to 35 cents estimated by analysts polled by Thomson Reuters. Revenue for the quarter was $343.2 million, below the estimated $348.2 million for the quarter.

While the insurance company missed analyst estimates, net income rose 11% year-over-year to $47.2 million.

In a note to investors following the results, BMO Capital Markets analyst Charles Sebaski said, "Organic growth appears very average compared with the industry overall and rather disappointing relative to Brown's first three quarters of 2013, which averaged organic growth of 8.3%."

TheStreet Ratings team rates BROWN & BROWN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BROWN & BROWN INC (BRO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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